A New Wave of Price Increases Expected: Tracing the Gas Price Hike

The newspaper "Hayastani Zhamanak" reports: "In Armenia, not only dairy products, beverages, and canned goods will become more expensive, but also agricultural products. The reason is the anticipated increase in gas prices starting July 19. This decision was made yesterday by the Public Services Regulatory Commission, which was discussing the request from "Gazprom Armenia" to revise the gas tariffs for Armenian consumers.

For example, greenhouse businesses will pay $224 for 1,000 cubic meters during the heating season from November 1 to March 1, up from the current $212. This same tariff will apply to enterprises in the canned goods, beverage, and dairy production sectors, but will be in effect throughout the entire year.

It should be noted that the change in gas prices will create serious problems for Armenia. It will negatively impact business entities and lead to price increases in both the transportation sector and industries that utilize gas. For instance, greenhouse owner Gagik Babakhanian, who has a 1400 sqm greenhouse, is extremely angered by the gas price hike. "I constantly think about this; I don’t know how to ease my anger, it was already expensive, we are barely managing to pay for what we've consumed. A crisis situation is going to unfold. I am already considering not growing tomatoes anymore; it's better not to engage in it because we are going to incur losses. This year has also started poorly—state of emergency, global crisis, people haven’t worked, they can’t leave their homes, restaurants and other public food establishments that are consumers of tomatoes are closed, we couldn't sell our products."

For more details, see today’s issue of the newspaper.