Lower natural gas price for economic entities in FBiH from January 2020

SARAJEVO, (Patria) - The Government of the Federation of BiH has approved that the wholesale price of natural gas for distribution economic entities in the Federation of BiH, starting from 1.1.2020, will be 585 KM/1000 Sm 3, or 0.585 KM/Sm 3, excluding VAT. The new price is 8.59 percent lower than the previous price.

The decision was made based on the request of the economic entity for production and transport of gas BH-Gas d.o.o. Sarajevo to the Federal Ministry of Trade for a change in the wholesale price for distribution companies in the Federation of BiH. The reason for the reduction is the movement of oil and oil derivative prices in the past nine months. Unlike the first quarter of 2019, in which the purchase price of natural gas from Gazprom Export increased, a decrease in the purchase price was recorded in the remainder of 2019. BH-Gas has calculated a further decrease in the purchase price in its projection for 2020.

The reduction in the selling price during the winter season will, according to BH Gas, result in an increase in natural gas consumption and lead to greater price competitiveness of natural gas compared to other energy sources.