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Gas price to rise between 0.5-9% from January

The retail price of gas delivered to households, small consumers and district-heating providers by so-called “universal service-providers” is to rise between 0.5%-9% as of January 1, 2011 depending on the amount of consumption, the business daily Napi Gazdaság said.

The paper said agreement was reached early this week with the service providers on the pricing formula to come into effect on January 1. Under the formula, the price of the gas purchased based on the long-term Russian gas agreement will account for 60% of the price, while the Rotterdam spot market price will account for the remaining 40%.

The newspaper notes that Gazprom said last week it would sell natural gas to European buyers for $327 per 1,000 cubic meters in the fourth quarter. The price was $318 in the third quarter.

The paper said that service providers will pay any profits generated on the basis of the gas price formula into the central budget, but will have to take any losses. (MTI – Econews)