2019.11.28 14:57

Gas prices to decrease by one-fifth for Lithuanian households

Roma Pakėnienė, BNS 2019.11.28 14:57

Natural gas prices for Lithuanian households are to fall by between 17 and 22 percent next January. The significant decrease comes in light of the cheaper LNG on the world markets and lower maintenance costs of Lithuania's LNG terminal in Klaipėda.

The National Energy Regulatory Council (VERT) approved new rates for customers of the electricity and gas supply company Ignitis on Thursday.

Energy Minister Žygimantas Vaičiūnas told BNS in October that the natural gas prices were likely to decline by around 15 percent, due to a fall in global liquefied natural gas (LNG) prices and a cut in the costs of operating the Klaipėda LNG terminal.

VERT spokeswoman Loreta Kimutytė has told BNS that a 39-percent cut in the so-called LNG terminal security component, a levy for all users of the natural gas transmission system, was factored in while calculating the new gas prices.

The natural gas price for household consumers rose 12-18 percent per cubic metre last January and remained unchanged in July. The rates are reviewed every six months.

Natural gas prices for Lithuanian consumers had been on the decline since 2014 due to a price discount obtained from Russia's gas giant Gazprom, but they rose by 5-8 percent in July 2017 when the discount expired.

In early 2018, the prices were cut by 8 percent for the smallest household consumers and remained unchanged for other users.