Bečarević: By the end of 2015, gas price will be the lowest in 10 years, BH Gas must adjust prices

Long-time director of BH Gas, Almir Bečarević, has once again warned about the alarming situation on the BiH gas market, stating that citizens must have complete information about gas prices, supply limitations, and debts to Gazprom Export, reports the BiH news agency Patria. 

- The gas market is being demolished, and the consequences will be catastrophic. We need to state the amounts owed by Sarajevogas and Birac. The consumption of fuel oil will not solve anything; on the contrary, it will lead to further erosion of gas consumption and endanger individual users - citizens - states Bečarević. 

STATEMENT ON GAS PRICE ADJUSTMENT 

Bečarević states that Gazprom Export has informed all European customers about the gas price adjustment for the first quarter of 2015. 

In a statement dated 01/09/2015, BH-Gas informed the public that it had not received official confirmation from Gazprom Export regarding the price adjustment for the first quarter of 2015. Bečarević claims that this notification was also delivered to BH-Gas, informing BH-Gas that a price adjustment, downwards, is being made for the first quarter, specifically by 38 USD per 1000 Sm3. This reduces the natural gas price for Bosnia and Herzegovina by 10%, and it now amounts to 339 USD per 1000 Sm3 - says Bečarević.

- The adjustment was made in accordance with the gas price calculation formula, which is based on the decline in oil prices over the past nine months. What can be optimistically stated already is that the price of natural gas for the second quarter will continue to fall, and the expected gas price from 04/01/2015 will be 265-275 USD per 1000 Sm3. This means a further drop in the gas price by about 70 USD per 1000 Sm3, bringing the gas price in the first two quarters of 2015 down by about 110 USD per 1000 Sm3 - explains Bečarević.

Given that BH-Gas has official confirmation of the gas price adjustment, it will be interesting to see if it will adjust it for citizens, or if the solution is for Canton Sarajevo - Toplane Sarajevo to consume fuel oil instead of natural gas.

- I want to reiterate that the gas price by the end of 2015 will be at its lowest level in the past ten years, and during that period, it was 520 KM per 1000 Sm3 and lower for citizens, while today it is 754 USD per 1000 Sm3. I understand the needs of BH-Gas, i.e., the management, to hide information from the public, but I cannot understand the public itself watching as there is no price adjustment in the domestic market and as fuel oil is consumed instead of gas, while industry in FBiH pays an unrealistically high price for gas - says Bečarević.