Russia has approved a 25% increase in local wholesale gas prices in 2008, two days after the elections won by President Vladimir Putin's party.
The decision, taken despite rising inflationary pressures, will raise gas prices for industry and consumers.
State-capped gas prices in Russia are much lower than world prices.
The government planned the 25% price rise in 2008 a year ago, but the Federal Tariffs Service (FTS) postponed the decision several times.
Gas prices in Russia were raised by 15% in 2007, in line with previous years.
Inflationary pressures
In October, Russia's largest food producers signed an agreement with the government to freeze prices on a range of basic foodstuffs.
The agreement, due to run until the end of January next year, is aimed at curbing high food inflation hitting millions of low-income families.
The gas price increase could add to the inflationary pressures. Inflation is expected to exceed 11% in 2007, well above the planned rate of 8%.
The Russian government has promised to fully liberalise the country's gas and electricity market by 2011 and drop the practice of price regulation.
FTS also approved a 19% increase in gas transportation fees for independent gas producers from 2008.
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