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Natural gas consumption is likely to continue to expand gradually.
submited on 10.01.2006 in category Political stability | Regulated markets | Privatisation | Macroeconomic developments
submited on 10.01.2006 in category Political stability | Regulated markets | Privatisation | Macroeconomic developments
After 2003 the consumption of natural gas shows signs of gradual increase both in terms of volume and as part of the overall energy consumption in the country. Such trend can be attributed to some market and regulatory factors. In accordance with the agreements during the EU accession process Bulgaria obtained the right to tax the natural gas with 0% excise until 2014. Although there is not any explicitly formulated government position to stimulate the gas consumption, the policy until this moment in the sector display the government’s commitment to create suitable environment for the process. The increase in the number and the ratio of the gas distribution companies in the overall gas consumption reflects the effects of such policy. Even so the natural gas consumption by the household sector represents small part of the overall consumption, in the next few years a significant increase may be expected. This forecast is based on the growth in the process of development of gas distribution network, the relatively low price of natural gas compared to other energy sources and the promotional campaigns offered by gas distribution companies. The fast development of gas distribution network allows us to expect increase in the gas consumption in the transport sector both in private and in public transportation.
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