E.ON Gaz Romania Sees Household Gas Prices Up 30% In 2008

E.ON Gaz Romania sees the country's household gas prices rising 10% in January 2008 and estimates prices will grow by 30% at the end of next year, the Romanian unit of Germany's giant E.ON said Monday.

"Following price growths for imported natural gas, prices for final consumers should be hiked by nearly 10% starting January 2008. Prices are expected to rise by 30% in 2008", the president of E.ON Gaz Romania's Board Achim Saul said in a statement.

Saul said Romanian imported gas prices are seen up 20% on January 1, 2008, due to the rise in international oil prices. In 2008, Romanian gas prices for imported gas are seen up 60% by the end of 2008.

But Romania's Economy and Finance Minister Varujan Vosganian said Friday natural gas prices in 2008 will see a single-digit increase on January 1, 2008.

Vosganian said prices for imported gas, which assures nearly 40% of the country's annual consumption, will grow on January 1 by 15-16%.

On the other hand, Saul said E.ON Gaz Romania might face difficulties in assuring the gas demand if gas prices for final consumers do not reflect the higher acquisition costs.

"Nobody can sell natural gas at prices below the acquisition costs. Therefore, the supply to some consumers might be reduced or even ceased," Saul said.

Mediafax