Bosnia's Federation Clears BH Gas to Cut Wholesale Prices

The government of Bosnia’s Muslim-Croat Federation said on Monday it has approved a reduction in gas prices for distribution companies at the request of gas monopoly BH Gas.

The government said in a press release following a weekly sitting that it has granted consent to BH Gas to cut the wholesale price of natural gas by 114 marka ($65.5/71.6 euro) to 640 marka per 1,000 standard cu m of gas, starting from October 1.

Last month, local media reported that BH Gas was preparing to propose to the government a 15% cut in gas prices for distribution companies after resolving a decade-long problem with Hungarian gas transmission firm FGSZ.

Conditions for a reduction in gas prices were created when BH Gas reached an agreement with FGSZ on transportation of gas through Hungary, allowing a significant decrease in transportation costs and making room for price cuts.  

BH Gas has already reduced gas prices for industrial consumers.

BH Gas is based in Sarajevo, in the Federation, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.

Source: SeeNews