Azerbaijan inclined to "paint" the rising costs of the production of hydrocarbons

BAKU/09.12.13/Turan : Under the current economic model of regular tariff increases for basic food production - not the result but a sequential process, said at a public hearing on the impact of the tariff increase on excise and some other goods Head of the socio-economic development Muhammad Talybly.

According to him, the price of oil and other energy rise in two cases - either in countries exclusively importing this type of product, and depending on the world situation, or in countries that are prone to "draw" double-digit growth dynamics in hydrocarbon extraction costs. According to official data of the operator of Shah Deniz consortium, even today, the cost price of a barrel of crude oil costs $ 10 though for several years, the price of a barrel of this product on world markets rarely drops to $ 100.

The government is encouraging the population that increases in the price of gasoline and diesel fuel will solve the problem with traffic, but this is unrealistic. In 2006 Azerbaijan registered 650 thousand, in 2013 - 1.2 million vehicles already considering adding annual imports of this type of product , said the expert.

The answer to the question should be sought in the very scarce in the history of the budget minus 1 billion 679 million manats , or 2.87 % of GDP - the economist . And it does not involve financial costs or production problems the state oil company - on the contrary, SOCAR always copes with the obligations both to the local fiscal authorities, as the international financial institutions. The Government , on the one hand, from year to year , limiting the transfer payments from the State Oil Fund , on the other hand, increases rates by population that will hit as real incomes of citizens, so the budget .

According to Talybly, until 2007 there were no government subsidies to agricultural development. Over the past 7 years of direct investment in this sector spent 300 million manat, and strengthen the position of no real - the proportion of agricultural products as he was, and has remained at 4.5 % of GDP. Small and medium farmers still can not grow, maintain and implement crop received normal profit though their fields grown to 80 % of the crop. With rising fuel prices farmers will be forced to bow to a senior manager and latifundistas falling into dependence on monopolies.

Government compares fuel prices in Azerbaijan with European ones, but in Europe the average salary can buy shareware from 1.5 to 2.5 thousand liters of petrol and we can buy about 650 liters.

Raising tariffs objectively promotes the share of the shadow economy, because a society in which major financial blow will have to more effectively deal with the multiplier effect of inflation - rightly expert believes. - 17D-


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