Polish Government Advertises Gas Price Cut

Three weeks after revealing the gas price agreement between PGNiG and Russian Gazprom, the Polish government communicated that the state controlled gas company has applied for domestic price cuts.

The announcement opened the Prime Minister’s press conference, televised immediately after a cabinet meeting.

Donald Tusk noted that the import price reduction would be transferred “directly and immediately” to individual customers, stressing that the decision would affect 20 million Poles from the beginning of 2013.

“Only  Romania will supply cheaper gas to it citizens” – Tusk said, commenting that in Romania 80% of gas consumption is supplied by domestic production, while Poland is heavily dependent on imports from Russia.

“Certainly, we would like to pay even less. The time will come. Of course, it will require real diversification”- Donald Tusk added.

The Prime Minister was accompanied by the Treasury Minister responsible for overseeing the state-controlled gas firm Polskie Gornictwo Naftowe i Gazownictwo (PGNiG). Mikolaj Budzanowski repeated that the reduction of prices of Russian gas brings them close to those paid by Germany.

“The Polish company, along with our intentions and recommendations, will be reimbursed for overpayment for gas provided in 2012” – Budzanowski said – “It means that we will pay less for the complete volume.  Instead of 15 bln zlotys Polish consumers will pay 12 bln zlotys.”

These numbers suggest that the Russian gas import price reduction was closer to 20% rather than previously mentioned “more than 15 percent.”

If the regulator agrees on changes in tariffs, the lower cost of imports from Russia will benefit primarily individual customers.

PGNiG requested for a 10 percent price decrease for households, while industry customers, including several chemical plants buying over half of its gas with higher margins, will get a 3.3 percent reduction.