The Administrative Court of Yerevan has dismissed the action of 7,230 citizens against the rise of natural gas tariffs. The court found on Monday (July 26) that the rise in prices was merited and consistent with the price of imported natural gas. The court also cited as part of its decision, the fact that ArmRosgazprom, an Armenian-Russian gas distributor company made huge investments.

In March the Public Services Regulatory Commission of Armenia approved the bid of the gas distribution monopolist ArmRosgazprom (ARG) to raise natural gas tariffs. According to that bid, from April 1, about half a million consumers would have to pay 132,000 drams ($347) instead of the current 96,000 drams ($252) per 1,000 cubic meters of natural gas. In winter, on a monthly basis gas consumers would have to pay 10,000 drams (about $26) more for natural gas on the average. For large consumers the natural gas tariff was increased from $215 to $243 per 1,000 cubic meters.

Meanwhile, the Armenian National Congress (ANC) which applied to the court, insists that the price hike is not economically grounded and that ARG gets super profits.

“Moreover, it is not grounded at all, that people must pay more than rich men, who are bigger consumers, who even do not pay taxes. There is no such principle in the world,” former Prime Minister of Armenia Hrant Bagratyan told ArmeniaNow. “The same Russian Gazprom (ARG is the daughter company of Russian Gazprom) sells gas at lower prices to people, than to rich producers”

The court did not hear testimony, but instead made its judgment based on written argument. Attorney Vahe Hovsepyan believes that the written examination influenced the court verdict, “because many questions could have been clarified and confirmed only at an oral examination.”

According to Bagratyan, the court was afraid of holding a proper oral trial, because it clearly understood that the arguments of the protest are much more grounded.

Bagratyan added that even though the action was dismissed; however, it would produce an important result, because it would prevent further price hike.

“I know that there were plans to raise the [natural gas] tariffs during the upcoming year, too. This protest suppressed them. They understood that they cannot do whatever they want to with people,” Bagratyan says.