Gas users have not yet received their gas bills for this April from the ArmRusgasprom CJSC, but commercial companies have jacked up their prices.

Gas-filling stations proved to be “pioneers” in this fishy business. They were about to raise condensed gas prices, but, pressured by indignant drivers, gave up the idea.

However, consumers have seen higher prices for many consumer products. The RA Statistical Service is conducting price monitoring for April, without, however, making any comments on the price rise. The press service of the RA State Commission for Protection of Economic Competition informed NEWS.am that the Commission normally interferes if any facts of unfair competition are revealed. At present, however, the Commission is conducting monitoring and improving relevant laws, which is necessary for it to enhance its activities.

The threat of a new surge in prices is so serious that RA Prime Minister Tigran Sargsyan addressed the problem personally. On April 13, the Premier stated that the “Central Bank, State Revenue Committee and the State Commission for Protection of Economic Competition will combine their efforts in controlling unjustifiable price rise resultant from the recent rise in the gas price.” According to him, the three agencies will cooperate and exchange information to exercise control over the economic entities practicing price manipulation.

In fact, however, it was the RA Public Services Regulatory Commission that gave “the go-ahead” to the price rise by approving ArmRusgasprom’s application for a rise in the gas price. Indeed, the authorized agencies “got a dose of their own medicine.”

An expert in consumer market voiced his opinion on the price rise. According to him, the galloping gas prices will inevitably push up the prices for various consumer products – for both “gas-consuming” ones and not. A rise in prices for the first group raises the cost of living. Big businessmen, who are accustomed to super-profits, will hardly put up with it. The revaluation of the Armenian dram against the U.S. dollar has its impact on import prices, which is exacerbating the situation. One more aggravating factor is monopolistic markets positions.

As regards smaller businessmen, they show “imitation effect”. After slightly raising the price and successfully selling his products, a businessman continues “in the same spirit.” His rivals follow suit. A bad example is catching, is it not?

The expert said that the bread price will not formally be raised though bread is a “gas-consuming” product. Bread is the most essential food product for the Armenian population, especially for the socially vulnerable sections. A rise in the bread price can cause negative domestic political consequences. But the “law” – without going beyond it, one can easily circumvent it! Without changing the bread price – and the invoice price -the producers reduce the “net weight.” As a result, consumers pay more for the same loaf, without any statistical records made.

T.P.