MOSCOW, June 26 (Xinhua) -- Domestic gas price should be steadily raised higher than inflation rate, in order to finance the construction of the Power of Siberia pipeline, Russia's energy giant Gazprom said Thursday.
"The gas price in 2015 should outstrip inflation by 2 percentage points, 3 points in 2016 and 4 in 2017," a senior official of Gazprom told reporters.
Domestic gas prices would increase by up to 8-10 percent during that period. Gazprom sees the price increase as the most desirable way to collect money for implementation of the Power of Siberia project, the official said.
The company also asked the government for tax benefits to facilitate the funding of the pipeline construction.
In May, China and Russia signed the Purchase and Sales Contract on East Route Gas Project, and the 30-year contract will see the east route pipeline starting providing China with 38 billion cubic meters of natural gas annually from 2018.
Gazprom said last Thursday that it would start welding seams of Power of Siberia pipeline for gas supplies to China in August.