Financial and business news from Bulgaria

Peak in gas price for July, passes the high levels of March 2020

Bulgargaz forecast is for 44.72 BGN per megawatt-hour
After 20 pm on Tuesday Bulgargaz announced its forecast for gas price for July and this is the peak value of 44.72 BGN per megawatt-hour. Thus, it passes the winter price of the first quarter of 2020, before the contract with Gazprom is changed and the historic cheaper from 1 April is announced. Then megawatt-hour cost 44.04 BGN.

Compared to the drastic drop of the price back then, which was 25.20 BGN per megawatt-hour, the current forecast for an increase from 1 July is 77.46% up.

The current price for May is 37.71 BGN per megawatt-hour compared to the forecast for July, it is 18.59 per cent lower. Let's not forget that since January, where smoothly, where not, there has been an increase in the price of blue fuel. And this depends mainly on the quotations of the European gas hubs, whose weight in the price of fuel is 70%, the remaining 30% in the formula are the prices of alternative oil fuels - fuel oil and gas oil with different sulphur content.

The company announces that the estimated gas price reflects the development of European gas markets and quotations of alternative gas fuels as of 11.05.2021. A final proposal for validation of the gas price for July 2021 will be deposited for approval by the EWRC on 01.07.2021, taking into account the quotations of the pricing components as of 30.06.2021.

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