site.bta Industrialists Demand Slash of Gas Price by At Least 22.7 Per cent as of April

Industrialists Demand Slash of Gas Price by At Least 22.7 Per cent as of April

Sofia, February 23 (BTA) - Industrial energy consumers insist on cutting the price of natural gas by at least 22.7 per cent as of April. The demand is included in a letter the Bulgarian Federation of Industrial Energy Consumers sent to the ministers of economy and of energy.

The industrial consumers argue that oil prices have reached a five-year bottom while the price of natural gas for industrial purposes in Bulgaria has not dropped. At the moment industrial consumers pay more than 600 leva per 1,000 cu m of gas.

The letter says that the price of natural gas is strongly bound to a basket of alternative oil fuels which at the current moment of low oil prices should result in a sharp decline in the costs for natural gas which, however, does not happen.

Calculations made by the Federation show that the regulated price of natural gas in Bulgaria are close to the 2008 levels when oil reached 145 dollars per barrel, whereas now the price of petrol is almost thrice lower. The Federation argues that given the huge difference in energy prices, the Bulgarian economy cannot be competitive on the world markets.

The Federation says that state-run Bulgargaz could take advantage of the successful models for managing the forex risk.