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Government Stops Subsidizing Natural Gas Tariff

Government of Georgia will not subsidize natural gas tariff, Mariam Valishvili, Deputy Energy Minister told Business Course.

The 5-Tetri subsidy will be abolished after new tariff determined by GNERC will come into force on July 20, she said.

This subsidy will be abolished. The 5-tetri tariff was moved to the supply price. Instead of 120 USD, the tariff is 105 USD. Therefore, the memorandum will not be extended. Neither regulation decree nor memorandum will run – it will be terminated after the new agreement will come into force.

“This is the efficient tariff that will be paid in unified form in due license areal. This will be a fixed efficient tariff for Tbilisi residents, while GNERC tariff will run for regions”, Valishvili said.

Natural gas tariff has increased to GENRC-regulated subscribes of SOCAR Georgian Gas and SakorGas, GNERC chairperson Irina Milorava noted after the meeting.
Under GNERC decision, SOCAR Georgia Gas tariff per 1 cubic meter will be 56.940 Tetri (including VAT), while Sakorgas tariff per 1 cubic meter is 57.011 Tetri.