Gas prices look set to go up

Gas prices look set to rise substantially for Slovak consumers in the coming months, as the main gas utility Slovenský plynárenský priemysel (SPP) will have to purchase gas from Russia at higher prices because of the price association with the US dollar, which is firming against the euro.

The exchange rate in January was USD 1.42 for EUR 1, but in July it had dropped to roughly USD 1.25. SPP buys its gas for dollars, with the FX influence not appearing got several months in the end prices for consumers. In the first six months of the year the euro has dropped by around 12% against the dollar, which will most likely mean higher gas prices for everyone later in the year.

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