VILNIUS - Lietuvos Dujos (Lithuanian Gas) will cut prices of natural gas for large industrial users by some 6 percent starting July 1.
On May 30 the state control commission for energy prices announced its estimations of natural gas prices for large industrial users since the prices endorsed by Lithuanian Gas exceeded ceilings that had been established by the commission.
The prices as estimated by the commission will come into effect July 1 provided that Lithuanian Gas does not take any measures to revise its prices down voluntarily.
"The company will correct these mistakes," Loreta Kimutyte, head of public information department of the commission. "In line with legislation, for the prices to come into effect July 1 the company shall announce 30 days prior to that term," or June 1.
As estimated by the commission, the gas transmission price, as endorsed by the board of Lithuanian Gas, exceeded the ceiling imposed by the commission by 25 percent. Distribution and supply tariffs exceeded the ceiling values by 13 percent and 14 percent, respectively.
Last week Lithuanian Gas announced that it would not raise gas prices for private users and might reduce rates for some large industrial users.
However, in the opinion of Vidmantas Jankauskas, the commission's chairman, Lithuanian Gas has breached the ceiling prices, leaving the commission with no choice but to endorse lower prices.
In late April, the commission confirmed the price ceiling for the upcoming three-year period, or some 6.4 percent below the previous ceiling's value. At the time Lithuanian Gas noted that the commission's decision was politically motivated (focused on upcoming elections) and neglected any economic principals.
