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Price of Romanian natural gas has become 33 pct higher than import gas price, in June

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The price of natural gas domestic production has increased by 33 percent as compared to that of import gas in June, according to data published by the Romanian Commodities Exchange (BRM) and analyzed by AGERPRES.

Thus, in June, the Romanian gas price was the same as in May, namely 101.24 lei per MWh, the highest monthly average ever recorded on the commodities exchange.

This despite the fact that, as a rule, the gas price is low in June, as consumption is low. For comparison, in June 2018, the domestic gas production price was 75,13 lei per MWh, and in July 2017 it stood at 63,74 lei per MWh.

At the Vienna Gas Exchange, the CEGH Front Month Index for June 2019 dropped to the equivalent of 76.51 lei per MWh, from 81.56 lei per MWh in May.

Government Emergency Ordinance (OUG) 114/2018, approved in December 2018, fixed at 68 lei per MWh, for the next three years, the price for the entire domestic gas production. OUG 19/2019, approved in March 2019, amended this provision, leaving at a fixed price only the quantities of gas intended for household customers and thermal power plants, starting May 1.

This has led to an increase in the price of domestic gas which is traded on the commodities exchange and is destined for economic agents.

At the same time, starting with April, the price of domestic gas has become higher than that of imports.

As of July 1, National Energy Regulatory Authority (ANRE) decided to make gas for household consumers on cheaper by 5 percent, on average.

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