PGNiG Obtains Regulatory Approval for Gas Price Hike

Poland's energy regulator URE approved a 6.4% gas price hike for listed gas giant PGNiG effective from October 1, 2010, to March 31, 2011, URE announced in a press statement.

As the increase pertains only to the price of gas and not other elements of the tariff, gas bills for households will increase on average by only 2.5%, while the biggest recipients of high-methane gas will suffer a 6% hike, URE statement read.

"The amount of savings gained thanks to cutting the original motion by PGNiG is estimated at around 475 million zlotys," URE said of savings on the client side.

PGNiG had motioned for a 10% hike but was called on by the regulator to tone its demands down.

Significant Rise in Petrol Prices Expected in Poland Next Year

Fuel prices in Poland are set to increase considerably in 2011, regardless of potential oil prices hikes on the global markets, the daily Dziennik Gazeta Prawna writes.

In the pessimistic scenario the price 1l of petrol will increase by PLN 0.2, the daily calculates, taking into account expected VAT hike, changes in mandatory fuel reserves and new regulations regarding biofuels.
Such prices hikes will translate into higher inflation.