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Gas tariff may increase

By Messenger Staff
Monday, March 13
Georgia’s Energy Minister, Kakhi Kaladze, doesn’t exclude the possibility that gas tariffs may increase.

The Minister says the increase will be related to the national currency's devaluation against the US dollar.

Kaladze says if the State Regulatory Commission establishes new tariffs for the population of Georgia, the government will consider the subsidy for the country’s vulnerable population, as this already happens in terms of electricity.

Experts anticipate increases in gas bills from the summer and say the increase will allegedly stand at 8-10 tetri.

However, in his previous statements, when the new agreement was signed with Gazprom, Kaladze claimed there would be no increase in gas and electricity tariffs.

Moreover, the Georgian Dream authorities promised during the election period that communal fees would decrease in Georgia.

Kaladze says that in the event of an increase, the state budget would allocate funds to pay the increased gas tariff instead of the country’s vulnerable segment of population, which amounts to about 80% of the whole country, as their monthly incomes are frequently insufficient even for food, communal fees and low price clothes.

As gas tariffs are lower than those for electricity, many people use gas for heating in cold periods; this means people will have to pay higher tariffs in winter period.

The government has already increased excise tax for oil products, and so its price is increasing.

In addition, the national currently was about 1.78 for 1 USD before November 2014, but now equals more than 2.50 .

The economic situation of the Georgian people has not improved, and unemployment still remains the key social problem in Georgia.

The government’s economic policy currently experiences difficulties it places huge burden on the country’s population and country has to overcome the crisis.