Drivers of vehicles using natural gas (butane), including a majority of taxis and minibuses, fear that the rise in the tariff announced last week and effective April 1 will have a negative impact on their livelihood.

Late last week the public utilities regulator approved Armenia’s Russian-dominated gas distribution monopoly’s bid to increase the retail price of natural gas for consumers. The Public Services Regulatory Commission authorized a 37.5 percent increase following ArmRosgazprom’s request for a 41 percent rise. The regulator then confirmed on its official website (www.psrc.am) that “despite the fact that the increase in gas tariffs directly impacts the tariffs of electricity generated at thermal power plants, but it will be possible to avoid a rise of retail electricity prices for end consumers.” It said this will be possible mainly due to the start on May 1 this year of supply to the domestic market of electricity generated with the use of a more cost-effective technology at the Yerevan thermal power plant.

There is no official report that would suggest that public transport fare will increase as a result of a higher gas price. Yet, there is no report that would say it is unlikely either.

Chief specialist at the Transport Department of Yerevan’s Municipality Arsen Gasparyan says that in order to make estimations or forecasts they first of all need to get serious substantiation on the rise of the current fare from those who own public transport routes. “As of today, no such application has been made,” he added.

And drivers think that while it is likely that a higher gas price will not directly affect the taxi or bus fare or “hit the pockets” of owners of minibus routes or taxi services, it will eventually make their lives more difficult.

“They will say the municipality does not allow raising the fare and will tell us to fend for ourselves. And we will have to get [liquefied] gas for 4,500 drams ($12) instead of the current 3,000 drams ($8),” taxi driver Vardan Hambartsumyan, 40, complained talking to ArmeniaNow.

Hambartsumyan is a father of four. Three of his children go to school and his elder daughter goes to medical college where the student fee is 150,000 drams (about $400) a year. He says he is the only breadwinner in their large family and he earns about 2,000 drams ($5) a day by driving a taxi.

“If they do raise [the gas price], I will have to seek another job,” he says.

Samvel Poghosyan, 53, shares this position. He says he will work as a driver only until the rise in gas prices. “Who will use your services if the minimum price of 600 ($1.60) becomes 1,000 drams ($2.60)?” he says. “It is better to bring a horse and a donkey from the village and ride them.”