The price of gas to domestic consumers is set to see a sharp hike from the beginning of September, on average rising by just over half. Monopoly supplier Eesti Gaas says the rise is the result of soaring gas prices on the world market.
Management board member Margus Kaasik said: "In July of this year, the price of the world gas market reached its record level of the past decade."
"We have been able to keep the sales price of residential customers stable and unchanged for the past three years, but the almost 60-percent rise in purchase prices in the last six months forces us to make corrections," Kaasik went on.
Gas prices worldwide had been rising significantly even prior to this year, going on to double between spring and the present time, the company says. Factors included economic recovery after the initial coronavirus waves, as well as raw material price increases, and a rise in demand.
The price changes will come into effect from September 1.
"The new price depends on the customer's gas consumption and the terms of the contract, the growth will be around 51 percent on average," Kaasik said, adding that should world prices start to fall again, so too would price to the domestic consumer in Estonia.
The company says it has informed customers of its new tariffs.
Eesti Gaas AS, branded internationally as Elenger, sells natural gas on the Latvian, Lithuanian and Finnish markets, as well as in Estonia, and also sells LNG, CNG and electricity.
It is a subsidiary of conglomerate Infortar.
Editor: Andrew Whyte