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LNG prices are sharply rising in Armenia: the government refers to external factors

Photo: armenia.gazprom.ru

The sharp rise in prices for liquefied natural gas (LNG) in Armenia is due to an external, not an internal factor. Chairman of the State Commission for the Protection of Economic Competition of the Republic Gegham Gevorgyan stated this today, July 18, in an interview with journalists.

According to him, the exchange value of LNG has increased, currently it exceeds $ 0.25 per liter. Such price dynamics persists not only in Armenia, but also around the world, the head of the department noted.

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At the same time, he denied reports that LNG prices in Armenia have increased due to the fact that 21 companies have left the local market. Gevorgyan noted that there are 98 companies importing liquefied natural gas in Armenia, each with a market share of no more than 10%.

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Armenian experts have previously noted that unlike gasoline and diesel fuel, 70% of the market of which is controlled by large companies, LNG sales in the republic are not monopolized. They attributed the current price increase to dumping that occurred a few months ago. In an effort to gain a foothold in the market and displace competitors, LNG companies at some point began to sharply reduce prices. As a result, smaller economic entities, working at a loss, could not withstand competition and were forced out of the market. The remaining importers gradually "inflated" prices, thereby compensating for dumping.

Another problem is related to the lack of Armenia's stationary liquefied gas storage facilities. When importing gas, local companies must immediately sell it to gas stations. If the station does not accept, the importer will face serious difficulties. That is why he needs to sell his products as soon as possible.

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22.02.2025

21.02.2025

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