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Commercial Gas Price to Hike in Tbilisi

According to the special manager of “KazTransGas-Tbilisi” Gia Benashvili,  revision of tariffs for gas will affect only legal entities. Gia Benashvili told reporters that  “KazTransGas-Tbilisi” buys 100 percent of the gas.

“We buy the gas in dollars and sell in  GEL. Tariffs operating today were set in 2007-2008. After that, the lari has changed. The company tried to solve the problem as much as possible at the expense of internal resources without touching the tariffs, “- said Gia Benashvili.

He says that  starting from  October, the company lost almost GEL 11 million only due to changes in exchange rate of GEL. “Internal reserves are not left, through which we could buy gas and ensure uninterrupted gas supply to Tbilisi,” – Benashvili notes.

In his words, tariffs imposed by the Georgian National Energy and Water Supply Regulatory Commission (GNERC) are still enacted, but the company has already applied to it in connection with the tariffs. “The Georgian government is also considering this issue and in the near future the public will be informed about it. Revision of tariffs affect legal persons, and not the population, “- said Gia Benashvili.

“SOCAR Georgia Gas” suspended a decision to increase commercial gas price in early February.

On February 5, Prime Minister of Georgia Irakli Garibashvili expressed his hope to reach an agreement with SOCAR and avoid the growth of gas tariffs.

In his words, he instructed Vice Premiers to begin negotiations with the Azerbaijani oil company.

At the same time, the Energy Minister said that all will become clear until March 1.

“SOCAR” supplies Georgia with  natural gas and  delivers natural gas to the regions, while  the gas distribution company “Telasi” serves Tbilisi , which in turn buys  the gas from  “SOCAR”.

The company decided to suspend a  decision to increase gas tariffs for commercial operators after the government session when  Prime Minister called on the company to review the decision.

SOCAR   final decision on gas price increase from March 1 is still unknown, but nevertheless “KazTransGas” still hikes gas purchased from SOCAR  due to the lari’s depreciation.