Srbijagas chief hints at price hike

Srbijagas Director Dušan Bajatović says that as the government meets to discuss ways to help this state-run gas company, a price increase could be considered.

Izvor: B92

Monday, 19.01.2009.

11:41

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Srbijagas Director Dusan Bajatovic says that as the government meets to discuss ways to help this state-run gas company, a price increase could be considered. "The RSD 4.2bn losses that Srbijagas has had in the last three months of 2008 alone must be made up for somehow. These losses are a result of a more expensive dollar and the fact that we sell gas cheaper than we pay for it as we import it," he told daily Blic. Srbijagas chief hints at price hike Another reason, Bajatovic said, is the fact that the government has approved up to 33 percent of gas bills to be paid six months after they are due. One way to help Srbijagas would be to set aside money from the state budget, to allow the company to take out another, similar to what was done in December, while the third option would be to hike the gas prices in Serbia, he told the newspaper. Due to the exchange rate of the Serbian dinar, Bajatovic explained, Russia's announcements that gas will become cheaper "will not be felt" in this country. Srbijagas is reluctant to cut off consumers who fail to pay in time in the middle of the winter, and with poor record of collecting payments, has constant liquidity problems when it deals with foreign suppliers, he said. As for the gas crisis that ended recently with Russia and Ukraine striking a deal, Bajatovic said on Monday that at present he had "no technical information" as to whether gas deliveries had been resumed, noting that according to announcements, this fuel would begin to flow once all relevant papers had been signed. According to him, "it is not possible that the drama will be repeated and that the flow of gas will be stopped on the Ukrainian border". Russia's interest is to continue to export gas and Ukraine does not want to be an unreliable partner, Bajatovic told state television RTS, assessing that the “story is coming to an end”. Speaking about what was going on "behind the scenes" at the gas summit in Moscow last weekend, Bajatovic said that Gazprom spokesman Segei Kupriyanov had announced that the works on the South Stream, which would resolve the problem of the Balkan countries, Greece and Italy, would be speeded up.

Srbijagas chief hints at price hike

Another reason, Bajatović said, is the fact that the government has approved up to 33 percent of gas bills to be paid six months after they are due.

One way to help Srbijagas would be to set aside money from the state budget, to allow the company to take out another, similar to what was done in December, while the third option would be to hike the gas prices in Serbia, he told the newspaper.

Due to the exchange rate of the Serbian dinar, Bajatović explained, Russia's announcements that gas will become cheaper "will not be felt" in this country.

Srbijagas is reluctant to cut off consumers who fail to pay in time in the middle of the winter, and with poor record of collecting payments, has constant liquidity problems when it deals with foreign suppliers, he said.

As for the gas crisis that ended recently with Russia and Ukraine striking a deal, Bajatović said on Monday that at present he had "no technical information" as to whether gas deliveries had been resumed, noting that according to announcements, this fuel would begin to flow once all relevant papers had been signed.

According to him, "it is not possible that the drama will be repeated and that the flow of gas will be stopped on the Ukrainian border".

Russia's interest is to continue to export gas and Ukraine does not want to be an unreliable partner, Bajatović told state television RTS, assessing that the “story is coming to an end”.

Speaking about what was going on "behind the scenes" at the gas summit in Moscow last weekend, Bajatović said that Gazprom spokesman Segei Kupriyanov had announced that the works on the South Stream, which would resolve the problem of the Balkan countries, Greece and Italy, would be speeded up.

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