Prices for a liter of AI-95 gasoline in Azerbaijan have exceeded $1 and reached 0.8 manats per liter, 0.7 manats for AI-92 and AI-80, 0.6 manats for diesel fuel. Ilkin Mejidov, Secretary of the Tariff Council, said that it was done for dynamic economic development of the country. Ilham Shaban, Head of the Baku Center for Oil Studies, noted that the rise of prices was expected. The budget deficit in 2014 will total $2 billion, higher petroleum prices would help reduce the figure to 500 million manats.
The expert emphasized that SOCAR facilities buy oil for $10 per barrel. The audit of 2012 shows that SOCAR refineries made a total of 2.5 billion manats. The SOCAR has lost over 50% of petroleum exports since 2008. Demand for diesel fuel and gasoline on the home market has grown by about 50%.
Shaban said that Azerbaijan had imported 550,000 cars in the past 5-6 years. Azerbaijan used to consume up to 1.6 million tons of diesel fuel annually, the volume this year will total 2.6 million tons. He reminded that petroleum prices growing by 0.15 manats will bring additional $500 million of income.
The expert pointed out that the initial plans were to increase prices for fuel in early 2014.
