Russia is preparing a record increase in the price of Russian wholesale gas for households. From July 2024, the increase will be 11.2%, and from July 2025 – 8.2%. This is according to the forecast of the Russian Ministry of Economy, quoted by The Moscow Times.
In other words, a 20% increase in gas prices is expected in the next 2 years, and 34% since the beginning of the war in Ukraine. Last year there were increases twice – by 3% in July and by 8.5% in December.
For comparison, in 2021 the appreciation was 3%, in 2020 – 3%, in 2019 – 1.4%, in 2018 – 3.4%, in 2017 – 3.9%, and in 2015 and 2016 – 7.5% each.
Why – because “Gazprom” is late
PHOTO: Getty Images
Every year, the price of gas in Russia is determined from July 1. And now the increase in price is caused by the weak revenues of “Gazprom”, which lost a lot of money because of Putin’s decision to attack Ukraine and declare a gas war on Europe. In 2023, the export of Russian gas to the Old Continent will be only 12.1 billion cubic meters – that is, as much as in the 1970s. Before the war, the annual export of Russian gas to Europe exceeded 155 billion cubic meters, it even reached 180 billion. And in the second half of 2022, Gazprom recorded a net loss of 1.3 trillion rubles. The company’s reserves are already below 700 billion rubles, after they were 2 trillion rubles before the war.