Natural gas prices will go up by 37.5 percent on April as was confirmed following a decision by a public utilities regulatory body on Friday to largely approve an Armenian gas monopoly’s hike bid.

The new price of natural gas set for consumers is only insignificantly lower than that requested by ArmRosgazprom (ARG), a joint Russian-Armenian national gas distribution company.

As approved by the Public Services Regulatory Commission (PSRC), beginning April 1 ARG will start selling 1,000 cubic meters of gas to its nearly half a million consumers at a price of 132,000 drams (about $347), instead of the current price of 96,000 drams (about $252). Meanwhile, the gas price for large gas consumers, i.e. industrial enterprises, will go up by 13 percent.

ARG submitted a bid for a 41 percent rise in the gas price on January 22 (136 drams per cubic meter). PSRC managed to negotiate that price down to 132 drams.

PSRC explains that the rise in the natural gas tariff reflects a number of factors: “By nearly a 17 percent rise in the price of natural gas imported to Armenia, a sharp appreciation of the US dollar against the Armenian national currency, the dram, about a 20 percent reduction of natural gas consumption, the need for ARG to recover its investments.”

Economists estimate that higher gas prices might entail a 15 percent average rise in electricity, water supply and consumer goods prices.

Armenia’s Ombudsman Armen Harutyunyan on Thursday joined criticism of the move earlier expressed by different politicians as he said that the increase in prices will only exacerbate social tension.