Hungary's Government Moderates Gas Price Rise

  • 25 Mar 2010 11:00 AM
Hungary's Government Moderates Gas Price Rise
"Gas prices are set to rise less than 10% after the government modified the formula used to set gas prices.

According to previous reports, retail gas prices were to rise 15-16% on April 1, based on the recommendation by the Hungarian Energy Office.

Prices are based on a complicated formula that includes many variables, with the dollar/forint exchange rate and gas purchase prices being important factors.

The latest modification in the formula, which observers see as politically motivated, entails changing a multiplier in the purchase and sale price of gas in stock by gas traders. This will help keep the gas price increase below 10% in the short term, but may lead to a steeper rise in the longer run."

Source: Hungary Around the Clock.

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