Distrigaz Sud: Natural Gas Prices Should Rise 18% On Jul 1

"The gas prices were up $100 on international markets as of December , to $420 per 1,000 cubic meters," Distrigaz Sud commercial director Cristian Dandu said Tuesday.

Dandu said that Distrigaz Sud reported first-quarter losses of 1.5 million lei (EUR1=RON 3.6347) per day. The company’s loss decreased to RON1 million per day as of April.

"We filed the National Energy Watchdog ANRE all documents grounding the price hike. If the case, we would submit other documents by July 1," Dandu also said.

E.ON Gaz Romania said early March Romanian natural gas prices should increase by 12% on April 1 and by up to 20% in 2008, due to the rise of prices on the international market. Should the prices do not rise on April 1, E.ON Gaz Romania will report a loss of RON55 million in the first quarter of 2008.

On February 1, ANRE hiked natural gas prices for household consumers by 8.5%.

Following the increase, household consumers will pay RON989.55 for 1,000 cubic meters of natural gas provided by Distrigaz Sud and RON983.1 for 1,000 cubic meters of natural gas provided by E.ON Romania.

Distrigaz Sud said in March that the tariff for imported natural gas should grow in the second quarter between 8% and 12%.

Economy and Finance Minister Varujan Vosganian said earlier this year that gas prices would not be hiked as long as the population does not have the necessary resources to support the measure.

Distrigaz Sud and E.ON Romania are the two major gas distributors on the local market.