FX Energy to Increase Wholesale Natural Gas Prices By 11% in Poland

FX Energy has announced that the Energy Regulatory Office in Poland has approved an 11.1% increase in the wholesale prices of natural gas.

The new prices will take effect on November 1, 2008. FX Energy’s gas contracts in Poland are priced as a percentage of published wholesale prices. With the increase in prices, gas prices are up 28% for 2008.

Clay Newton, vice president of finance at FX Energy, said: “Historically, US gas prices are highly volatile and weather dependent. They appear to be softening just now because of economic pressures, reduced demand and supply increases.

In contrast, gas markets in Europe are dominated by rapidly declining European domestic supply and by increasing dependence on a single supplier, Russia. In addition, there is upward price pressure in Poland as the government tries to reduce subsidies for its natural gas end users in order to conform to European Union regulations.”