Bulgaria's State-Owned Gas Company Seeks 16% Price Hike from July

State-owned gas supplier Bulgargaz has requested a 15.73% price increase from July 1, according to a media statement published on the company's website on Monday.

Bulgargaz bases its demand on the higher US dollar value and on the unfulfilled circumstances provided in the report of the State Commission for Energy and Water Regulation (DKEVR) on gas prices from April 1.

The company further highlights the need to inject some 148.5 million cubic meters of gas into the Chiren underground storage facility to guard against supply disruptions in the next hearing season.

The proposed gas price increase does not take into account the 11% discount Bulgaria is supposed to get from Russia from Aril 1 because the agreement has not been finalized.

Bulgargaz calls for a 15.73% price spike from July 1 to BGN 809.05 per 1000 cu m, excise duty and VAT excluded.

Bulgargaz closed 2011 at a loss of BGN 72.2 M.

"Add to that the BGN 37.391 M loss for 2010 and the operating loss of BGN 101.821 M by April 30, 2012, and it makes it pretty obvious that the company is in a difficult financial situation," Bulgargaz says.