Abstract

Main challenges of the regional gas industry functioning in the extreme conditions of the North include a high degree of the main assets wear. It is primarily connected with the lack of geological survey works, absence of the integral gas transport system and lack of investments. The currently existing system of state regulation of the gas producing company's activity in the Sakha (Yakutia) Republic does not allow to maintain the balance of interests between gas enterprises and consumers, and produces a negative impact on the creation establishment stable conditions for the economy functioning and innovative development in the region. The problem of price control in the natural gas market remains particularly acute. A provision for settlement of these challenges is the increase in effectiveness of the state control for the natural gas pricing by means of development of an economically justified pricing method and its application in the state control of the gas wholesale price offered by gas producing companies in the energy-isolated territories of Russia, the mechanism of which is suggested in this article. DOI: 10.5901/mjss.2015.v6n4s4p103

Highlights

  • It seems that in the market economy conditions, the state’s involvement in the relationships of gas producers and consumers should be minimal

  • In order to develop an effective method of pricing for the natural gas extracted by the JSC Yakutsk Fuel and Energy Company, it would be expedient to group the main factors affecting the price level

  • The cost of gas is determined by the structure of fixed and variable costs and the prices for several cost elements. b) Factors determined by the violation of economic discipline:

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Summary

Introduction

It seems that in the market economy conditions, the state’s involvement in the relationships of gas producers and consumers should be minimal. The point is that economy adjustment by the state serves as an organic prerequisite of the possibility of stable economic, including market, relations (Lipsits, 2005). Government regulation of the economy in the market economy conditions is a system of standard measures of legislative, executive, and controlling nature, carried out by authorized state institutions and public organizations for the purpose of stabilization and adjustment of the existing economy. In foreign countries with developed and mixed economy, the area of regulated and state-controlled pricing ranges from 10 to 40 % of the total output. The share of prices controlled and regulated by the state in Austria achieves 10%, in Italy and China—up to 30%, in the USA—up to 10%, in France—20 %, in Sweden and Germany—up to 40 %, in Japan—up to 20% (Esipova, 2004)

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