Serbian Gas Prices Rise

Serbia's state energy regulator has approved an average 10.4% increase in wholesale gas prices for customers of the country's gas monopoly Srbijagas.

The price would go up to 36.7 dinars (€1.08) per cubic meter, including transport costs, spokesman for the regulator, Dusan Dakovic, told Reuters, adding that new tariffs for industrial consumers and residential consumers would take effect next week and on and February 1, respectively.

Srbijagas, which sought a 25% hike in natural gas prices, has complained that current tariffs are economically unsustainable and hamper future investments.

But raising energy rates are a sensitive issue in the Balkan country where the government likes to contain prices to avoid social discontent.

Serbia, which imports almost all of its natural gas from Russia, hopes to diversify its gas supplies.

The effort includes participation in the South Stream pipeline project project through a joint venture with Russia's Gazprom. South Stream will deliver Russian gas to Europe, bypassing Ukraine.