Does Belarus sell concessionary resources at world prices to population?
The price of electricity increased by a quarter after the recent tariff rise. We used to pay 116 roubles for 1 kWh at the beginning of the year. The current price is 145 roubles. Interestingly, our country buys Russian energy for only 4 cents (85 roubles). Inhabitants of the country pay 86 dollars more for Russian gas than the country does. Belarusians buy fuel at a price comparable to the world one – for 214 dollars per one thousand cubic metres.
Let us remind you that tariffs were raised post factum. It happened in spite of the fact that the limit of 5 dollars set by Alyaksandr Lukashenka was exceeded at the beginning of the year. There is no economic reason for increasing tariffs. The Ministry of household services is refusing to comment on the increase of the cost of its services.
The irony of it is the fact that you cannot expect any help from the law “On protection of rights of household services consumers”. It has nothing to do with increasing tariffs, said one of its authors, a deputy Volha Abramava, in an interview with ERB:
“The Council of Ministers assigns the tariffs. These are totally different fields… The law means protection of rights of consumers of household services, they should be aware of their rights, obligations, and the ways of protection of their rights”.
The deputy agreed that a tariff rise was not a popular measure but said that it was “the barest necessity”:
“Can you find at least one citizen who would be happy about a tariff rise? Nevertheless, it is the barest necessity. It is clear that tariffs will continue increasing…
International financial institutions for reforming the economy have been demanding that citizens should pay 100% of the cost of household services for a long time. Belarusians are paying much less. The social mission of the state does not correspond to the demands of international financial structures”.
Volha Abramava compares the tariff increase to a bitter medicine that has to be taken anyway:
“There are some extremely bitter medicines… But they have to be taken anyway… No wonder that the fact does not make anyone happy. The state will compensate for it by increasing wages, pensions and other payments”.
The state will have to compensate for quite a lot. Economists from “PRIME-TASS” have calculated that a Belarusian should have been getting more than 2000 dollars a month to compensate for the increase of prices of household services:
“For example, you used to earn 500 dollars a month five years ago. However, 500 dollars five years ago and today is not the same thing if you take thу purchasing power into account.
Household services tariffs have increased by 6 times in Belarus since 2002. So the dollar has become 4.5 times cheaper as compared to household services tariffs. Thus, it turns out that a Belarusian who earned 500 dollars a month at that time would have to earn at least 2300 dollars to preserve his or her purchasing power today”.
The calculation was made before the recent tariff rise.
The main reason for the tariff rise is said to be the fact that Belarusians pay 32% of the cost price of household services. Interestingly, according to the Ministry of Statistics, the income of organizations offering household services increased by 45.2% in the first quarter of this year in comparison with the same period of the last year. The profitability of some enterprises totalled 36%. There are no unprofitable organizations in this sphere.
It is impossible to understand why tariffs should be raised when there is such a good profitability. Moreover, it is incomprehensible how can enterprises rendering household services reach such profitability saying that the population compensates for only a third of their expenses.
Let us remind you that tariffs were raised post factum. It happened in spite of the fact that the limit of 5 dollars set by Alyaksandr Lukashenka was exceeded at the beginning of the year. There is no economic reason for increasing tariffs. The Ministry of household services is refusing to comment on the increase of the cost of its services.
The irony of it is the fact that you cannot expect any help from the law “On protection of rights of household services consumers”. It has nothing to do with increasing tariffs, said one of its authors, a deputy Volha Abramava, in an interview with ERB:
“The Council of Ministers assigns the tariffs. These are totally different fields… The law means protection of rights of consumers of household services, they should be aware of their rights, obligations, and the ways of protection of their rights”.
The deputy agreed that a tariff rise was not a popular measure but said that it was “the barest necessity”:
“Can you find at least one citizen who would be happy about a tariff rise? Nevertheless, it is the barest necessity. It is clear that tariffs will continue increasing…
International financial institutions for reforming the economy have been demanding that citizens should pay 100% of the cost of household services for a long time. Belarusians are paying much less. The social mission of the state does not correspond to the demands of international financial structures”.
Volha Abramava compares the tariff increase to a bitter medicine that has to be taken anyway:
“There are some extremely bitter medicines… But they have to be taken anyway… No wonder that the fact does not make anyone happy. The state will compensate for it by increasing wages, pensions and other payments”.
The state will have to compensate for quite a lot. Economists from “PRIME-TASS” have calculated that a Belarusian should have been getting more than 2000 dollars a month to compensate for the increase of prices of household services:
“For example, you used to earn 500 dollars a month five years ago. However, 500 dollars five years ago and today is not the same thing if you take thу purchasing power into account.
Household services tariffs have increased by 6 times in Belarus since 2002. So the dollar has become 4.5 times cheaper as compared to household services tariffs. Thus, it turns out that a Belarusian who earned 500 dollars a month at that time would have to earn at least 2300 dollars to preserve his or her purchasing power today”.
The calculation was made before the recent tariff rise.
The main reason for the tariff rise is said to be the fact that Belarusians pay 32% of the cost price of household services. Interestingly, according to the Ministry of Statistics, the income of organizations offering household services increased by 45.2% in the first quarter of this year in comparison with the same period of the last year. The profitability of some enterprises totalled 36%. There are no unprofitable organizations in this sphere.
It is impossible to understand why tariffs should be raised when there is such a good profitability. Moreover, it is incomprehensible how can enterprises rendering household services reach such profitability saying that the population compensates for only a third of their expenses.
