Romania’s Distrigaz Sud To Ask For Higher Gas Prices As Of Jan 1

"We face lower international oil prices while the gas prices are on an upward trend," Arnaud said.

Arnaud sees the import gas prices to $540 or $550 per 1,000 cubic meters by yearend, compared with the current $510 or $520 per 1,000 cubic meters.

The gas price is settled according to international oil prices, any price variation being mirrored in gas prices in a four to six month-period.

Arnaud added that Distrigaz Sud currently negotiates with the local authorities on this issue.

Household gas prices were last increased on July 1, by 12.5% on average, and the National Energy Authority ANRE has refused another 10% rise requested by the two main distributors Distrigaz Sud and E.ON Gaz Romania for October 1.

ANRE announced late September that prices of natural gas delivered to Romanian consumers will remain unchanged until the end of the year, with even a price decrease possibility in 2009.

Earlier Thursday, Romanian Economy and Finance Minister Varujan Vosganian said the lower growing pace of natural gas prices for consumers was appropriate as it helped the Romanian economy to cope with the financial crisis.

Vosganian said Romanian gas prices have risen by only 20%, while at international level, prices have soared 70%.