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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.

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