Azerbaijani Tariff Council changes retail prices for some goods, services

Azerbaijani Tariff Council changes retail prices for some goods, services
  • Clock-gray 00:08
  • calendar-gray 05 January 2021

On January 4, a regular meeting of the Tariff Council took place, APA reports.

At the meeting appeals of the relevant structures were considered and relevant decisions were made.

The State Oil Company (SOCAR) has approached the Council with a proposal to raise retail prices for natural gas, AI-92 gasoline and diesel fuel.

Despite the economic rationale for the proposal to raise prices for natural gas, the Tariff Council did not consider it expedient to increase tariffs for natural gas, taking into account the current social policy.

In SOCAR's appeal, the increase in retail prices for AI-92 motor gasoline and diesel fuel was justified by bringing the quality of these products to high European standards, improving the ecological environment, continuing work on the reconstruction and modernization of the oil refining industry. It should be noted that by June 2022 it is planned to bring diesel fuel into full compliance, and by June 2023 - AI-92 motor gasoline to the Euro-5 standard.

At the meeting, the retail price of AI-92 motor gasoline was determined in the amount of 1 manat per 1 liter, and the retail price of diesel fuel was 0.80 AZN per 1 liter. Considering the environmental damage from the use of diesel fuel, the price difference has been reduced in order to switch to higher gasoline consumption.

For reference, it is noted that even after the change in tariffs, retail prices for motor gasoline AI-92 are lower than in most CIS countries. So, at present, the retail price of AI-92 motor gasoline averages 1.0 manat per liter in Russia, 1.72 manat in Ukraine, 1.14 manat in Belarus, and 1.12 manat in Georgia. The cost of diesel fuel in Turkey is 1.44 manats per 1 liter, in Russia - 1.12 manats, in Ukraine - 1.72 manats, in Belarus - 1.21 manats, in Armenia - 1.19 manats and in Georgia - 1 , 15 manat.

In recent years, the import of cars to Azerbaijan has grown significantly. So, in 2018, 28 876 cars were imported, in 2019 - 47 710, and for 11 months of 2020 - 47 841 cars. In parallel with the growth of imports, the demand for gasoline and diesel fuel increased.

The last adjustment of prices for diesel fuel was made on 02.12.2013, and for gasoline AI-92 - 14.07.2017. In those periods, the average monthly salary in the country was 425.1 manats and 528.5 manats, respectively. In 2013-2020, the average monthly salary in the country increased by 66%, pensions - by 73%. For 10 months of last year (January-October), the average monthly salary was 704.5 manats.

Since AI-92 motor gasoline is mainly used in personal passenger cars, it will not cause a serious increase in prices in the consumer market, and will also stimulate the use of public transport and the transition to fuel-efficient cars. As a result of price regulation, additional revenues to the state budget are predicted, which will be directed to socially-oriented measures in accordance with the social policy of a systemic and sustainable nature carried out in the country.

In order to neutralize the impact of the rise in prices for diesel fuel on business entities engaged in passenger transportation, they will be compensated. The mechanism for providing compensation will be announced by the end of January. This important step, which serves the interests of the population, especially the socially vulnerable group, was taken to prevent tariff changes in public transport, which citizens often use in everyday life.

Control measures will be taken to prevent abuse of tariff regulation, unjustified price increases.

At the same time, taking into account the impact of the rise in prices for diesel fuel on the agricultural sector, the number of subsidies allocated by the government will also be revised.

For information, we note that by the resolution of the Cabinet of Ministers of the Republic of Azerbaijan, prices for other oil products were liberalized (except for AI-92 motor gasoline, diesel fuel, and bitumen).

At the meeting of the Tariff Council, tariffs in other areas were also revised.

Thus, they discussed the appeal of the State Service for Property Issues under the Ministry of Economy to conduct a technical inventory of the real estate, including information about property in the register and consider tariffs for related services. Taking into account that the tariffs for these services were approved in 2009 and additional funds received as a result of tariff changes will be used to purchase equipment for the provision of high-quality, flexible, and reliable services, further improve the social status of workers, expand the use of information technology, approved new tariffs.

The new tariffs will be valid from January 5, 2021.

At the meeting of the Tariff Council, prices were also approved for about 300 medicines that have passed state registration. A complete list of 12 392 medicines, trade name, pharmaceutical form, name of the active ingredient, dosage, commercial packaging, wholesale and retail prices, taking into account the country of origin and the date of entry into force, are presented on the official website of the Tariff (Price) Council (www.tariff .gov.az) in the section "Medicines" (http://tariff.gov.az/documents/DVA.pdf).

At the same time, given that the relevant resolution of the Cabinet of Ministers approved the payment for phytosanitary measures and state phytosanitary services, the resolution of the Tariff (Price) Council No. 4 dated 01.08.2014 was canceled.

The decisions can be found in the "Council Decisions" section on the official website of the Tariff (Price) Council (www.tariff.gov.az)

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