State-owned natural gas distributor Bulgargaz is unhappy with the offer of the State Energy and Water Regulation Commission (SEWRC) to raise gas prices by 13.25 per cent starting from April 1, Dnevnik daily reported on March 25.

The company has requested a price hike of 32 per cent, arguing that global fuel prices have risen strongly in recent months, but also because last year SEWRC has ordered lower-than-requested price hikes.

Last year, Bulgargaz asked for a 25 per cent increase, which SEWRC rejected, allowing a rise of only 9.87 per cent in January, with a further 10 per cent scheduled for April. The commission has agreed since then to sweeten its offer slightly.

If the regulator does not approve its request, Bulgargaz will post a 60 million leva loss in the second quarter alone, Dnevnik quoted the head of the company's gas trade department Ivan Ivanov as saying.

SEWRC chairman Konstantin Shoushoulov countered saying that Bulgargaz could still make a profit with the price hike offered by the regulator. SEWRC is scheduled to rule on the issue on March 27.

The regulator has already approved a 15-per-cent hike in heating prices starting from July 1 2008, with electricity distributors also demanding increases, ranging between nine to 12 per cent.