Are you sure?

Import price for gas likely to fall

The cost of natural gas imported from Russia to Hungary is likely to decrease from its current price of $534 to $450 per 1,000 cubic meters by July of 2009, business daily Világgazdaság reported on Friday.

Citing an anonymous inside source, Világgazdaság said that over the next six months the import-price of gas in Hungary should fall to $520 per 1,000 cubic meters beginning in January 2009 and to $480 in April of next year.

The newspaper noted that the import-price of gas in Hungary is established in a long-term Hungarian-Russian gas-trade agreement, which stipulates that the price be calculated against that of diesel and heating oil in the Mediterranean region nine months previously.

Hungary imports 65% of its gas from Russia's Gazprom, Econews reported in February.

Világgazdaság wrote that the decline in the import price of gas should cause the cost of electricity, district heating, chemicals and fertilizer and other commodities whose production requires gas to fall as well. The newspaper conjectured, however, that factors such as the conflicting interests between producers and suppliers as well as the proposed 8% “Robin Hood” profit-tax that energy producers and distributors/traders would have to pay in 2009 could moderate the expected decrease in the market cost of gas in Hungary next year.

A further weakening of the forint against the dollar, the currency used in global energy commerce, would also mitigate the decline in the market price of gas in Hungary, the business daily wrote.

Világgazdaság noted that in the months preceding the onset of the global financial-crisis, experts had predicted that the import price of gas in Hungary could rise to $600 per 1,000 cubic meters. (MTI – Econews)