On Tuesday, the Government is set to sign resolutions that will result in an increase in natural gas rates for all networks starting on Monday, April 1. This increase will see subsidies removed from high-income households, businesses, and industries, causing the price of gas to at least triple next month. Another extra jump in prices is expected between May and September.
The official definition of the rate increase has been delayed by two months due to concerns about anchoring inflation at lower levels. However, with the current fiscal situation and overall context of the energy sector, it was deemed necessary to implement this decision.
The Energy resolution 41/2024 establishes new wholesale gas prices at the Point of Entry to the Transportation System (PIST), which are a crucial part of the bill along with transportation, distribution, and tax margins. The impact of this resolution on users remains unclear, but officials have stated that different user segments will be affected differently, with some households seeing a near tripling of gas prices starting in April.
Overall, gas prices are expected to rise significantly for all users between May and September, with some paying over four times the current rate depending on their location. This rise is a part of the Government’s efforts to reduce energy subsidies and realign rates with the actual cost of supply. Despite concerns about its impact on low- and middle-income households, this new policy will be implemented to address financial challenges within the energy sector.
