Poland may raise PGNiG gas price limits in April

WARSAW, Feb 11 (Reuters) - Poland's energy regulator URE expects to allow gas monopoly PGNiG PGNI.WA to raise its prices in April, its deputy chief told Reuters on Monday.

PGNiG had hoped to raise prices from the beginning of this year, but the regulator delayed giving it a green light in December. The company has estimated the decision could cost it 300 million zlotys ($120.6 million) in the first quarter.

The prices PGNiG pays for gas are pegged to oil prices, but its retail prices are capped by the regulator.

"When the prices were set last time prices of oil were below $70 (per barrel) and now they're around $90. The balancing factor is the weak dollar agaist the zloty, but it doesn't compensate the rising prices enough," said URE deputy head Marek Woszczyk.

"The most realistic date for the introduction of new tariffs looks to be April 1," he said.

He declined to give the new price levels URE was considering.

PGNiG shares slipped 0.7 percent on Monday, while Warsaw's large cap WIG20 index .WIG20 rose 0.9 percent.

Source: By Pawel Bernat, Chris Borowski