Gas in households more expensive by 15 percent, autogas by 8.6 percent

Households in Croatia will pay 15 percent more for natural gas starting January 1. The Croatian government has approved an average price increase of 19 percent for gas distributors, but also adopted measures to mitigate this increase so that the price rise for households is less significant.

According to this decision, gas prices for households will increase by 15 percent compared to the previously applicable amount, while the remaining part of the increase, up to an average of 19 percent, will be covered by the state budget for 2010. For the implementation of this support, 65 million kuna has been allocated in the budget, stated Prime Minister Jadranka Kosor at this week’s government session.

The increase in the price of natural gas is a result of the price increase that distributors pay to INA, as the government raised the price of gas for the supplier (INA) from 1.32 kuna to 1.70 kuna per cubic meter on December 17, 2009. On Wednesday, December 30, the government adopted a decision on the tariff items for the supply of natural gas, which increased these prices by an average of 19 percent, as well as a decision on the implementation of special measures to mitigate price increases for households, under which the increase for households will amount to 15 percent.

By the government’s decision, the tariff items excluding VAT have been increased to an average of 2.33 kuna per cubic meter, with prices ranging from 2.27 to 2.71 kuna per cubic meter (excluding VAT) from distributor to distributor. Considering the new tariff items and the government’s decision to increase gas prices for households by 15 percent, distributors are still calculating and are currently only providing approximate prices at which gas will be charged to households from the beginning of this year.

Thus, the largest distributor, Gradska plinara Zagreb, which has been approved to increase its price from the previous 1.961 to 2.341 kuna per cubic meter (excluding VAT), estimates that the price households ultimately pay will rise from the previous 2.473 kuna per cubic meter to slightly over 2.8 kuna. We expect that this price will range between 2.8 and 2.9 kuna per cubic meter, they say at Gradska plinara. They also note that in this, as well as in other gas distributors, when calculating the final price, it should be taken into account that the supply price must include the amount for the calorific value of the gas, which is a variable amount and distributors know it when they receive the calculation for the gas supplied to them (usually a few lipa), and on top of that, 23 percent VAT must be added.

At HEP Plin Osijek, which has so far sold gas to households at a price of 2.29 kuna (including VAT) per cubic meter, they estimate that the new price will rise to around 2.65 kuna, “one lipa more or less, depending on the calorific value.” For households in Rijeka and the Rijeka ring, according to the local distributor, Energo, the price will increase from the current 2.67 kuna to around 3.10 kuna including VAT.

In Croatia, there are 38 natural gas distributors, and since they all have different prices, the price increases at the beginning of the year will also vary, with which distributors will start reading gas meters. On the bills sent to households, they will be required to print a separate item “special measure for households,” the amount of consumption in the billing period, and the monetary amount of the special measure for households. Monthly, they will send an invoice to the Ministry of Finance (for the previous month) “with a due date of 30 days, based on data on the total amount achieved through the implementation of the special measure for households,” states the government’s decision on the implementation of the special measure to mitigate the increase in the price of natural gas in households in 2010.

Additionally, starting today, autogas is also more expensive, and the new retail price of autogas at INA’s gas stations is 4.80 kuna per liter, which is 8.6 percent higher than the previous 4.42 kuna. (H)