Russia approves plan to double domestic natural gas prices

The Russian government approved a plan Thursday to more than double local natural gas prices by early next decade to make the economy more efficient, but it avoided a steep increase before parliamentary elections next year.

Officials have said that the cabinet will guarantee that there will be no steep price rises for ordinary Russians, while industry must be prepared to pay almost as much as Europe after adjusting for export duties and transportation costs.
The natural gas monopoly Gazprom has pushed for higher prices to curb local demand and free up more supply for lucrative exports. Independent producers like Novatek, which are not allowed to export, also want a better deal at home.

Russia’s economy is extremely inefficient in its use of natural gas, and some analysts estimate that up to 100 billion cubic meters a year, or one-sixth of total European consumption, could be saved through efficiency measures.

International Herald Tribune