According to the decision of the Azerbaijan Cabinet of Ministers No 146 made on April 6, 2016, imported black oil to be used for power generation is exempt from duty.
According to the government’s resolution, till January 1, 2017 black oil imported into the county to generate power by Azerenerji is exempt from customs duty.
The decision will be effective in 30 days, which since May 6. The company will need the documents about purpose of the imported products confirmed by the Energy Ministry.
The customs facilities are provided to satisfy the need in fuel for power generation.
According to Turan, Azerenerji will buy black oil for its needs from Russia or from Gasprom company.
Since August 2015 Azerenerji started using black oil to generate power at its hydraulic power stations. According to the statistics, for this purpose the company has used over 340,000 tons of black oil. That time black oil price was 300 AZN per 1 ton. Since December 1, 2015 the Tariff Council (regulator) reduced the black oil price for the power companies to 100 AZN ($62.00 at the current rate).
It looks like SOCAR’s oil refineries cannot supply power companies with black oil (then manufacture of light oil products goes down) and it was decided to supply them with imported fuel temporarily.
Since early year Azerenerji’s debt for natural gas supplied to SOCAR totaled 382 million AZN.
* SOCAR reported that in March 2016 average price of black oil was $162.1 per 1 ton.—0—
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