Liquefied gas price hike driven by supply issues and market speculation – Suren Parsyan

Speaking with Alpha News, economist Suren Parsyan addressed the sharp increase in liquefied gas prices in Armenia, noting that it is driven by several factors simultaneously.

“Usually, we import liquefied gas from Iran during the winter months, when problems arise at the Upper Lars checkpoint, and prices in the market rise to some extent. In such cases, importing from Iran becomes more advantageous,” the economist explained.

He emphasized that this winter the problems have multiplied: in addition to the usual difficulties at Upper Lars, Iran has also faced political tensions and export restrictions, which have delayed or halted alternative supplies to Armenia. According to Parsyan, this situation has led to a sharp rise in liquefied gas prices.

The economist noted that although around 100 businesses in Armenia are engaged in importing liquefied gas, most of them lack storage capacity.

“When parallel supplies were delayed or stopped, those importers with storage facilities began to take advantage of the situation and raise prices. This creates an artificial shortage and speculation,” Parsyan said, adding that the result has been inflation in the market.

Parsyan also criticized the position of the Competition and Consumer Protection Commission, pointing out that the commission claims there is no problem in the market since about 100 businesses are operating. In his view, this is a flawed approach, because the real impact on the market comes not from all importers, but from the limited number of companies with storage capacity, which are able to influence prices when supply problems arise.