Serbia Raises Consumer Gas Prices

Natural gas prices have risen in Serbia, with the increase to take effect from February 1.

The Balkan country's energy regulator decided that  homes will pay 8.6% more on average, or 44.4 dinars (€0.39) per cubic metre of gas, while a 9.5% increase for small and medium-sized businesses brings their average price to 40.42 dinars per cubic metre, Bloomberg reported.

Large industrial consumers pay 39.13 dinars per cubic meter following a 10% price increase on January 15.

The regulator allowed price increases following evidence that Srbijagas JP, the sole importer and main local gas supplier, was selling gas below the cost of imports.

Serbian Energy Minister Zorana Mihajlovic recently criticised the price of Russian natural gas. She said it was too high considering the friendly relations between the two countries, according to news agency Novosti.

Russia remains the principal source of natural gas for Serbia. Gazprom, the Russian gas company, delivered 1.4 billion cubic meters (bcm) to Serbia in 2011.

Under the current contract Serbia  pays 470 per 1,000 cubic metres for Russian gas supplies.