Srbijagas May Close Price Gap Between Gas Imports and Resale

Srbijagas JP, Serbia’s natural-gas monopoly, may eliminate losses stemming from a price disparity between the cost of importing gas from Russia and selling it in the home market.

The state-owned company expects that the cost of import, at $400 per 1,000 cubic meters in the first quarter, will fall to about $370 “in the course of the year,” while Serbia’s energy regulator may allow an increase in the resale price, now at $350 for a 1,000 cubic meters, Dusan Bajatovic, Srbijagas general manager said at a business forum in Kopaonik today.

“With a minor increase in the price for our consumers, we could achieve some balance,” Bajatovic said, reiterating that the state should end its “welfare approach” to regulated gas prices.

To contact the reporters on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net; Misha Savic in Belgrade at Msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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