Armenia's Natural Gas Market: What Sales Data Reveals

The newspaper 'Armenia's Republic' reports that while studying the compressed gas market, the State Commission for the Protection of Economic Competition conducted a detailed analysis of the expenditures and revenues of market companies in order to obtain a more accurate picture of pricing strategies over a year.

The study shows that some companies have maintained their profitability, while others have experienced changes. The profitability for those affected has varied from -3% to 4% compared to the average profitability from 2018 as of May 2019, and for certain companies, it has ranged from -4% to 22%.

However, what can the similar pricing policies adopted by these companies indicate? In response to this question, the President of the Commission briefly noted, “This may indicate potential price agreements among the companies.”

Specifically, in cases of sales by cubic meter, some companies exhibiting zero, negative, or low profitability may suggest that there were certain underestimations during the sale of natural gas per cubic meter, allowing them to sell the gas at relatively low prices. Conversely, in kilogram-based sales, hidden turnover disappears, and profitability reflects the actual picture within the companies.