High gas prices threaten labor strike in Armenia
By Sabina Idayatova
Transport companies hope that the Armenian government will
either raise the transport fees or reduce taxes after rise of gas
tariffs in the country.
The Armenian Commission on Public Service approved on June 7 new
tariffs for gas and electricity. According to the decision of the
commission, subscribers, who consume up to 10,000 cubic meters of
gas a month, will pay 156 drams instead of previous 132 drams per a
cubic meter of natural gas (1USD = 411AMD).
The situation is worsening by the fact that despite promises, the
government has not issued any decision on subsidies over the new
gas prices so far, Armenia Today reported.
This situation may result in closing down of roughly 60-65 operating shipping companies, unless public transport fares increase in Armenia, or other actions are taken to solve the problem following the recent rise in gas prices, Co-Chairman of the Union of Passenger Transportation Companies Vardan Panosian and Chairman of the RA Public Council's Transport Commission Tigran Hovannisian said recently.
According to Panosian, Armenia's public transport companies will
declare a strike unless the problems resulting from the gas and
diesel fuel prices increase are solved within two months.
"We don't want an increase in public transport fares. We want the
problem to be solved. In all likelihood, after discussions we will
take a decision to declare a strike," Hovhannisian said, noting
that their main demand is a cut in taxes.
Some taxi drivers even express their desire to emigrate from Armenia, as such prices does not leave any other way.
"Our drivers work 14-15 hours a day and are unable to solve their social problems. The majority of the carriers suffer losses," Panosian said.
Increase gas prices hit both private taxies and taxies of
transport companies, as they fill car individually by their own
expences. Drivers said they will have to increase prices for their
servoces if the problem will not be resolved, but it will
undoubtedly lead to reduction in the number of clients.
However, the department head at the Armenian Transport and
Communication Ministry, David Mekoyan, said on July 9 that
passenger transportation fees cannot increase without relevant
permission.
To change fares it is necessary to apply to the Mayor's Office,
regional executive powers and the Ministry of Transport and
Communications. So far, no company have requested for reviewing
tariffm, he underlined.