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Sarajevo Times > Blog > BUSINESS > Citizens and Businessmen in BiH enter the next Period with Fear because of Gas
BUSINESS

Citizens and Businessmen in BiH enter the next Period with Fear because of Gas

Published: July 17, 2022
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Gas in Bosnia and Herzegovina (BiH) is the most expensive in the region. From quarter to quarter, prices are higher. And there is a fear of a shortage. What awaits us? Can the authorities cover price increases with subsidies? The level of the price in the Federation, they say, is not determined by them but by Gazprom, from which Energoinvest supplies gas. But does the same directive apply in Republika Srpska (RS)?

The first price increase was in November last year. After that, in January of this year, and also in April. A price increase of an additional 23.36 percent was announced again. It has been confirmed that gas users, most of whom are in Sarajevo, Zenica, and Visoko, will pay twice as much for gas compared to October last year. This means – if citizens used to pay 48 pfennigs per cubic meter for gas, now they will pay 98 pfennigs, without VAT. The authorities say that they are forced to do so because Russia’s Gazprom dictates the price.

”This is a direct request from Gazprom to Energoinvest. Energoinvest urgently demanded a correction,” said the Federation of BiH (FBiH) Minister of Energy, Mining, and Industry Nermin Djindic (SBB).

Energoinvest also says that they do not set the price. And citizens and businessmen enter the next period with fear because the historical record prices of energy products will lead many to an even more difficult position. Businessmen are also facing a difficult period, as they announce higher prices for their products.

”This is not something that could potentially threaten some companies or that could lead to some closures, but it will definitely have to spill over to the prices of products and services towards end consumers,” says Adnan Smailbegovic, president of the Management Board of Employers’ Association of FBiH (UPFBiH).

The director of the UPFBiH, Mladen Pandurevic, points out that the prices of the products of a certain number of companies, primarily from Sarajevo, and partly from Visoko and Zenica, will increase- and their competitiveness in the market will be lower: “I’m afraid that our authorities are doing nothing or almost nothing.”

So, the citizens will again suffer the most, because they will have to pay for energy and food at higher prices. And the authorities, for example in Canton Sarajevo (CS), as the largest consumer of gas, subsidized price increases from November to March and then announced that they could not monitor the further difference.

The day before yesterday, at the urgent meeting with the representatives of Sarajevogas and Toplan, brief conclusions were drawn – they were not informed earlier, they will consider the procurement of alternative fuels, as it is possible that gas may not even be available, but also the possibility of cheaper procurement of natural gas.

”It may happen that there is no gas at all in October. First, we will carry out analyzes to see how much we can subsidize this state of affairs because many projects are underway,” states the Minister of Communal Economy, Infrastructure, and Environmental Protection of CS Enver Hadziahmetovic (NiP).

In RS they say that there is no price increase because they have a special gas arrangement with Russia.

”Gas price in RS did not increase. The fact that the Federation Government raised the price is their business decision. They don’t have such a good arrangement with the Russians. Currently, the price remains the same, and we will see movements on the stock market and on the world market,” said Nedeljko Elek, director of Sarajevogas Istocno Sarajevo.

However, the allegations were denied by Sarajevogas. It was said that the price increase in Istocno Sarajevo will be equal to that in the Federation, that gas price increases in this entity due to lower consumption can be covered with subsidies and that because of that the price increase will not affect the citizens to a greater extent, Federalna writes.

E.Dz.

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TAGGED:#BiH#gas#increase#prices
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