Chemical sector fears PGNiG-planned gas price hike

Chemical sector representatives fear that the planned 18% increase in natural gas prices could be lethal for the sector. National gas monopoly PGNiG has little choice but to raise prices, as its main supplier, Gazprom of Russia, recently increased prices by 30%."If we wanted to transfer the higher cost of Russian gas directly to customers, the price hike would reach some 17%-18% next year," said PGNiG president Andrzej Lipko. Moreover, the company needs to find a way out of its deteriorating financial situation. It is expected to record a loss of zl.700 million this year, while its debts are reaching zl.6 billion. PGNiG is now awaiting Economy Ministry decision on the maximum gas hike allowed next year. Economy Minister Janusz Steinhoff said that aside from the higher cost of gas imports, there is also the issue of PGNiG restructuring. The company, which employs 43,000 people, should cut its costs, said Steinhoff. Five companies from the nitrate sector, the biggest domestic gas recipients, signed together a protest motion against the planned hike. (Puls Biznesu, p.3, Gazeta Wyborcza, p.26) P.J.