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Gref Urges Gradual Rise in Gas Prices
Published at 29 November 2006, 03:55 GMT
Economic Development and Trade Minister German Gref wants local gas prices to more than double by 2011, he said Tuesday, two days ahead of a key government energy meeting.

But Gref said he wanted a smooth transition to higher state-regulated gas prices without the hike favored by Gazprom and Unified Energy Systems, which hopes for a knock-on rise in its own tariffs.

«This needs to be done smoothly. We plan to do this with a 2011 horizon. That timeframe will give all Russian enterprises time to adjust to a gas price of over $100 for 1,000 cubic meters in 2011», Gref said. «In the government, we will give our backing to the view that a smooth, predictable, pre-defined tariff policy for all energy users should be set for more than five years».

«If we raise prices sharply within two years, as some our colleagues suggest, we will deliver a serious blow to industry. ... But if we keep today's prices, the shock will fall on the energy sector. We have to find an acceptable course between these two to solve the problem».
Reuters
© Copyright 2006 The Moscow Times. All rights reserved.
 
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