Bulgaria's state-owned gas supplier Bulgargaz has warned that a gas price cut will put it into a difficult financial situation.

Alexander Petrov, head of a department of Bulgargaz, presented the opinion of the company on the gas price cut proposal of the State Commission for Energy and Water Regulation (DKEVR) at an open sitting of DKEVR on gas prices as of July 1, 2014.

Bulgargaz has argued that gas prices should remain unchanged, while the working group of DKEVR claims that the rates should be reduced by nearly 2.5%.

Petrov, as cited by dnevnik.bg, cautioned that Bulgargaz would be forced to sell below production cost if the gas price cut was approved.

He insisted that the tolerable gas price had been specified in the proposal of the company.

Petrov said that a price cut would render the company incapable of injecting fresh gas supplies to reach the full capacity of the Chiren underground gas storage facility which currently contained 377 million cubic meters of gas.

He claimed that a price decrease would prevent the injection of 60-90 million cubic meters of gas in the Chiren gas storage facility.

DKEVR Chair Boyan Boev said that the objections of the company would be taken into account and the commission would make a decision at the closed-doors sitting on June 30.

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