MOSCOW, November 18 (RIA Novosti) - Residential prices for natural gas in Russia will increase by an average of 11.9% in 2006, a statement from the Federal Tariff Service said Friday.
"On November 17, 2005 the Russian Federal Tariff Service adopted a decision to review wholesale prices for gas produced by Gazprom and its affiliates and distributed to Russian consumers, starting January 1, 2006," the statement said.
The Russian government approved the main parameters for the increase of wholesale prices for gas in mid-June 2005.
The Federal Tariff Service set the average rate increase of 10.5% for the industrial consumption and 11.9% for the residential consumers in order to eliminate a cross-subsidization between various consumption categories.
"Considering the 11-belt structure of the wholesale prices differentiation, regions located close to production areas will have lower price increases than remote regions. This approach reflects the relationship between wholesale prices and distance of gas transportation to a particular price belt," the statement said.
The service put the Kaliningrad Region, Russia's exclave on the Baltic Sea, into a separate price belt, taking into account the special status of the region.
The issue concerning the wholesale price level for the Kaliningrad Region will be considered later by Gazprom, the region's authorities and interested ministries and departments.
