Armenian opposition lawmaker Mesrop Manukyan raised concerns about a possible increase in natural gas prices and its economic consequences during a parliamentary committee hearing.
At a meeting of the National Assembly’s Standing Committee on Financial-Credit and Budgetary Affairs, Manukyan, a member of the Hayastan parliamentary faction, directed his question to Sevak Mikayelyan, nominated by the ruling Civil Contract party for a seat on the Central Bank Board.
“Regarding the increase in gas prices, is our economy prepared to absorb this shock, and what consequences would it have?” Manukyan asked, Panorama.am reports.
He pointed out that maintaining the current gas tariff from January 1 is not automatically guaranteed. According to the lawmaker, appropriate negotiations are needed to clarify whether gas prices will remain at their present level or change.
Responding to the question, Sevak Mikayelyan said the relevant government officials had taken into account the risks associated with potential gas price increases during budget planning.
He explained that the purpose of this work was to create opportunities to mitigate the negative effects of possible price increases and absorb the resulting risks.
“From the Central Bank’s perspective, the most important issue here is inflationary pressure. The Central Bank must monitor the relevant developments.
“The Central Bank’s task is to consider this scenario as well when making interest rate decisions based on scenario analyses and to use its available instruments to ensure that, at least over the medium term, these developments do not affect inflation to such an extent that it deviates from the target range,” Sevak Mikayelyan said.
Mesrop Manukyan responded: “If gas prices potentially increase, the rise will not be 10% or 20%; it could be much higher. The Central Bank governor once said this would lead to a collapse. The Central Bank must be prepared for every possible scenario.”
If Armenia’s membership in the Eurasian Economic Union (EAEU) is suspended, the price of imported natural gas could rise by 69%, from the current $177.50 to $300 per 1,000 cubic meters. This assessment appears in a report titled “On the Possible Consequences of Suspending the Application of the Treaty on the Eurasian Economic Union to the Republic of Armenia,” prepared by EAEU member states.
