Romanian companies will pay higher prices for natural gas

The price of domestic natural gas traded on the local exchange in May averaged RON 101.2 (EUR 42) per MWh, a historical record for Romanian gas, according to data from the Romanian Commodities Exchange consulted by Agerpres.

Furthermore, the market price in May was some 20% above the price of the gas traded in Austria, compared to 20% below the price of the Austrian gas one year earlier.

The rising gas prices on the Romanian market followed the Government capping the price of the natural gas produced locally and sold to households, under emergency ordinance (OUG) 114/2018 (revised this year). Initially, the Government capped prices for both residential and industrial users, but later (in March) the OUG was amended, and the industrial users have to pay the market price.

Thus, the price of Romanian gas increased from an average of RON 79 per MWh in 2018 to RON 92 per MWh in January and RON 90 per MWh in February and March. Then the price went up to RON 95.9 per MWh in April after OUG 114 was revised and to RON 101.2 per MWh in May.

On the Vienna gas exchange, the CEGH Front Month Index for May 2019 was the equivalent of RON 81.6 per MWh, 20% lower than that of Romanian gas.

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