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Andrei Spînu: Current gas rate does not cover purchase price of gas

Deputy Prime Minister Andrei Spînu said Moldovagaz’s request to raise the natural gas rate to 24 lei per cubic meter, with VAT included, is exaggerated, but admitted that the current gas rate of 15.18 lei should be raised as it does not cover the purchase price of gas. The official assured that the state will partially compensate the natural gas rates for consumers with low incomes, IPN reports.

Yesterday, Moldovagaz requested the National Agency for Energy Regulation to increase the average gas rate for end users. According to the company’s calculations, the natural gas rate should be raised from 14,060 lei to 22,229 lei per thousand cubic meters of gas or by 58.1%. Deputy Premier Andrei Spînu admitted that the rate should be raised as the purchase price is now higher.

“Owing to the war in Ukraine, we have an unprecedented situation. I cannot recollect a year when the price of gas in summer was higher than in winter. Calculations show the current rate does not cover the cost of the gas we buy from Gazprom. In April, we had a price of almost US$1,200. In May, the price is US$920. Respectively, the accumulated negative deviations made Moldovagaz to come with such a request to NAER. The Agency needs to do all the calculations, but I think the final rate of 24 lei is slightly exaggerated,” Andrei Spînu stated in the talk show “Secrets of the Power” on JurnalTV channel.

He noted that the reduction of VAT on natural gas is not a solution for the Government as the amounts collected into the state budget will decline and all the categories of citizens will get indirect support from the state.

“We are now working with the development partners to define the so-called energy poverty. There will be determined the families that should be subsidized and how much for them to be able to pay the bill. If we reduce VAT, everyone will receive aid. If we work out a targeted program for the most vulnerable ones, assistance will be offered only to those who need it. Among those vulnerable are the pensioners, persons with many children, the unemployed, those who have particular problems,” stated Andrei Spînu.

The higher gas rates are to take effect on June 1. If Moldovagaz’s request to raise the average gas rate to 22.22 lei is approved, the final rate per cubic meter of gas with VAT included will be 23.99 lei.

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