A-98 falls from exemption from customs duties and low demand?

Since April 2 petrol stations in Azerbaijan reduced the price of gasoline AI -98 from 1.5 to 1.03 manats per liter.

Prices for other brands of gasoline remain unchanged - AI-92 and AI-80 - 0.7 manats, and AI-95 - 0.8 manats.

Nobody explains the price reduction. The fuel prices are regulated by the Tariff Council , but the case with A-98 is an exception, as it is fully imported. Apparently played on lowering the Cabinet decision of February 1 , which repealed a 15% customs duty on imports of motor gasoline AI- 95 to June 1, 2014 , and on the A-98 without any time constraints. A role could also be played by low demand for A-98, which is often used as a "premium" fuel with extremely high quality engines (UltraHighPerformance).

According to State Statistical Committee, in 2013  only 179.8 tons or three tsistserns, or 3,000 gas filling  a full tank car that makes eight  refills a day, were imported. Official statistics did not report from where  petrol is imported, but it is known that SOCAR Petroleum Georgia  supplies "gasoline  from Romania from the  oil  processing plant RomPetrol.

As you know, last year SOCAR decided to completely abandon the production of petrol AI-95 and AI-98 and provide the market with imports.

Several experts believe this decision is not random. In the recent years, SOCAR has been buying up shares of a number of refineries in Eastern Europe and Turkey. This means that petrol AI-95 and A-98 will be exported to Azerbaijan and imported into the country under the control of enterprises accountable to the company. Due to the zero duty and symbolic excise, local monopolistic officials will have an additional net income. -0 -