Hungarian Gas Companies And Government Agree On Prices
- 24 Nov 2010 12:00 AM
"After months of talks, the government and gas suppliers have agreed on the new gas price formula that will come into effect next year. The new formula gives 60% weighting to the long-term import price of Russian oil and 40% weighting to the spot price of natural gas on the Rotterdam exchange.
Russia’s Gazprom has announced that it will raise prices from $318 to $327 per cubic metre in the fourth quarter.
Gas companies expect that many in the sector, mostly those that supply retail clients, could suffer losses from the new formula.
The government freeze on energy prices for this year has cost the sector several billion forints, Napi Gazdasag observes."
Source: Hungary Around the Clock
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