The new gas rate that was approved by the National Agency for Energy Regulation two days ago is an impetus that will lead to higher inflation, said ex-Premier Ion Chicu. According to him, even if the new gas rate was raised by 20%, it does not cover the purchase price of gas and this will generate debts to Gazprom, IPN reports.

According to the former Premier, the defective negotiation of the contract with Gazprom is one of the major causes of the rising inflation seen in Moldova. The new gas rate of 18.6 lei per cubic meter of gas will lead to a new rise in the prices of products and services.

“Immediately after the NAER’s decision, the president of Moldovagaz said that the new rate does not cover the purchase price of gas. The previous rate was approved based on a purchase price of US$620, but in April Moldovagaz bought gas at the price of US$1,193. Even if the gas rate was increased by 20%, it does not cover the purchase price. Moldovagaz will accumulate deviations and this means new debts to Gazprom. Moldovagaz will be unable to repay the debts and the solution will be the same – they will allocate money from the budget, as they did this winter, to pay the debts. It’s clear that this rate will influence the inflation up,” Ion Chicu stated in the program “Key Issue” on NTV Moldova channel.

The ex-Premier criticized the government for its decision to constitute parliamentary commissions to examine inflation, saying that these actions are late and populist.

“Two years ago, when we had drought, the pandemic and political turbulence, we had an inflation of 0.39%. Now we have the highest inflation in Europe. The Government worked for ten months. Why did the President convene the Supreme Security Council only now and this decided to set up two parliamentary commissions that will analyze the situation and will formulate proposals?” asked Ion Chicu.

According to the forecasts of the National Bank of Moldova, the inflation rate towards the end of this year will reach 31%.