Belarus may lose 2.5 percent of GDP due to higher gas costs
Utility bills may become more expensive by 1500 rubels. Euroradio explores what is likely to change if Belarus is to buy natural gas from Russia at $250 for 1000 cubic meters next year.
In 2011, Belarus is likely to pay $250 for Russian natural gas, according to the statement of the Russian side a month ago. Currently, we pay $184 per 1000 cubic meters of natural gas. If Russia raises the cost, Belarus will have to pay by 40 percent more next year. Who will be affected by the higher prices the most? Euroradio has tried to find outё.
Possibly, the costs for households may be inreased by the same 40 percent, says economist Leanid Zlotnikau. "I believe there will be a certain increase by 30-40 percent, because other sectors of the country's economy do not have enough resources to support the population".
One cubic meter of natural gas currently costs 462 rubels, which translates into $154 per 1000 cubic meters paid by households.
Apparently, households pay less for natural gas than the government buys from Russia. In Western European countries, households usually pay more, on the opposite. We pay less thanks to cross subsidies. Belarusian enterprises pay $217 per 1000 cubic meters of natural gas, explains Leanid Zlotnikau:
“Gazprom charges $184. Add up $11 charged by Beltransgaz. There is also a charge by Beltopgaz in order to deliver gas to the population. So compared to what households pay, we can see that the population pays less than it costs in order to deliver gas to apartments. There is an element of cross subsidies here. Companies and private enterprises get energy resources at higher costs than other consumers. They are charged more so that households pay less".
Next year, Gazprom is to supply 22.5 billion cubic meters of natural gas, worth of $5.6 billion. The economist says that our country may lose 2.5 percent of GDP due to higher gas costs.
In 2011, Belarus is likely to pay $250 for Russian natural gas, according to the statement of the Russian side a month ago. Currently, we pay $184 per 1000 cubic meters of natural gas. If Russia raises the cost, Belarus will have to pay by 40 percent more next year. Who will be affected by the higher prices the most? Euroradio has tried to find outё.
Possibly, the costs for households may be inreased by the same 40 percent, says economist Leanid Zlotnikau. "I believe there will be a certain increase by 30-40 percent, because other sectors of the country's economy do not have enough resources to support the population".
One cubic meter of natural gas currently costs 462 rubels, which translates into $154 per 1000 cubic meters paid by households.
Apparently, households pay less for natural gas than the government buys from Russia. In Western European countries, households usually pay more, on the opposite. We pay less thanks to cross subsidies. Belarusian enterprises pay $217 per 1000 cubic meters of natural gas, explains Leanid Zlotnikau:
“Gazprom charges $184. Add up $11 charged by Beltransgaz. There is also a charge by Beltopgaz in order to deliver gas to the population. So compared to what households pay, we can see that the population pays less than it costs in order to deliver gas to apartments. There is an element of cross subsidies here. Companies and private enterprises get energy resources at higher costs than other consumers. They are charged more so that households pay less".
Next year, Gazprom is to supply 22.5 billion cubic meters of natural gas, worth of $5.6 billion. The economist says that our country may lose 2.5 percent of GDP due to higher gas costs.
