Prime Minister Natalia Gavrilița made less optimistic forecasts about the gas tariff, saying this will be higher than 6.20 lei. She noted a final decision to this effect will be taken by the National Agency for Energy Regulation after Moldovagaz presents the calculations done based on the new purchase price and asks to adjust the tariff. The official said the Government will not yet leave the citizens to cope with the higher bills alone in winter and will help those with modest incomes and those who consume small amounts of gas, IPN reports.
Premier Gavrilița said the gas tariff will rise because the purchase price of gas paid by Moldova is higher and particular financial deviations may be included in the tariff.
“Moldovagaz does calculations and will ask NAER to approve the tariff based on the paid price. There are financial deviations and these can be recouped during a longer or a shorter period of time. It’s clear that we have an exceptional situation on the international natural gas market. We have a good price, but it is anyway higher than Moldova paid so far. We expect the tariff will be higher than 6.20 lei, which was the highest tariff paid so far, in 2012-2014. I don’t know if it will rise to 10 lei or not. We will find out after Moldovagaz and NAER do calculations,” Natalia Gavrilița stated in the talk show “Secrets of the Power” on JurnalTV channel.
Moldova’s former President Igor Dodon recently suggested annulling the VAT rate of 8% on natural gas, which would help save 300 million lei, but Natalia Gavrilița rejected such a proposal.
“VAT reductions generate distortions and become political. They should be applied when there is a clear social reason. Good practices show it’s better for the Government to subsidize the population directly rather than to reduce the fiscal burden on Moldovagaz. We consider these resources should be better offered to the citizens through assistance programs,” stated the Premier.
Natalia Gavrilița noted the Government will come with mixt support for the citizens, depending on their incomes and on consumption.
“The best social programs are the targeted programs based on the assessment of citizens’ incomes or of gas consumption and the money should go to those who really need support. We will increase the cold-month assistance that is provided in November-March to help the people pay the bills. We will also extend the eligibility criteria so that more families benefit from assistance and we will increase the size of this aid. Secondly, we will offer assistance depending on the amount of consumed natural gas,” said the official.
Moldova pays about US$450 per 1,000 cubic meters of natural gas to Gazprom for November. Currently, the natural gas tariff for VAT reductions is 4.20 lei.
