Bulgaria's State Energy and Water Regulation Commission (SEWRC) ruled on March 27 that natural gas prices would rise by no more than 13.25 per cent starting from April 1, the regulator said in a statement.

The ceiling is thus set at 413.47 leva for 1000 cu m, value-added tax excluded, compared to 365.1 leva before the hike.

The increase is 3.5 percentage points higher than initially planned, but will hardly be seen as a concession by state-owned natural gas distributor Bulgargaz, who requested a price hike of 32 per cent, arguing that global fuel prices have risen strongly in recent months.

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.

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 earlier this week.

SEWRC chairman Konstantin Shoushoulov countered saying that Bulgargaz could still make a profit with the price hike offered by the regulator.

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.