Gazprom: 60% rise in gas prices expected in Hungary this winter
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Gas prices could rise by up to 60% during the winter heating season, according to the latest announcement by Gazprom. This could make the energy crisis even more critical in countries that use Russian gas – including Hungary as well.
During the summer months, Gazprom’s European gas exports have fallen by 59%. From mid-June until the end of July, Gazprom cut back gas supplies to Germany on Nord Stream 1 by around 60%, due to turbine issue. Soon after, this has been reduced even further, as a result of which currently it sends only 20% of capacity to Germany on this very important route.
60% price increase expected
As a result of all this, gas prices on European exchanges have started to skyrocket again from mid-June, from the range of around EUR 80-90/MWh. With the rise of the last few days, we are now in the range above EUR 220, although it was below EUR 50 a year ago – reported by Portfolio.
According to Gazprom’s statement published on Tuesday, the price of natural gas has reached USD 2,500 per 1,000 cubic metres and could exceed USD 4,000 this winter. With this, Gazprom predicts an additional gas price increase of at least 60% by winter. This would lead to a very rough gas market situation in the winter. Additionally, it might also overwrite the new Hungarian system on overhead costs, meaning that the government may not be able to offer the preferential price even to those with below-average consumption.
Little Peti Szijjarto went to Moscow to beg for more gas. So if we the public aren’t gaining anything from this agreement, then who does?!
The Russians aren’t raising gas prices – they are happy anyone is still buying from them and thrilled that Hungary is willing to pay in Rubles. This is a kickback to the current Hungarian administration itself (and it’s made to look like the price is being exacted by the Russians).
Isn’t this the government trying to claw back some money after all the election bribes.