Radical reform in gas industry may start from gas prices

The Russian FAS offers to discuss the deregulation of wholesale gas prices, that existed in the industry forever, at the next Presidential Commission on Fuel and Energy Sector already. In the situation of surplus gas the prices deregulation may lead to their reduction, because of which all the gas companies will suffer losses, but for Gazprom it will be a chance to win back at least a part of the share of the domestic market, which it recently gave to independent producers. And if the monopoly retains the control over gas transportation, it will be able to manipulate the price and will get a huge advantage.

The FAS proposes to abandon the regulation of the wholesale gas prices, said deputy head of the Service Anatoly Golomolzin. "We believe that now there are prerequisites, and it is not a question of long-term transition. Already 40% of gas are sold at free prices, independently and in the exchange segment," - he explained, noted that the volume of gas trading on the stock exchange also grows. Mr. Golomolzin noted that the liberalization of the wholesale price would be submitted to the Presidential Commission on Fuel and Energy Sector, the meeting of which is expected in October-November. Gazprom, Novatek and Rosneft declined to comment, the Energy Ministry said that the issue wasn’t discussed with it and required additional study.