Petrol consumption has been growing in Azerbaijan significantly. If the situation continues, by 2017 our capacities will be limited and we will not be able to ensure further growth of consumption. For this reason we need to upgrade the refineries, said David Mammadov, SOCAR Vice President for Refining.
The Heydar Aliyev oil refinery in Baku is the only oil refinery in Azerbaijan manufacturing fuel and from January 1, 2015 Azerneftyag has joined it, which specializes in manufacture of oils and lubricants.
Vice President said that at present the volume of oil refining in Azerbaijan is over 6.5 million tons a year. Petrol production totals 1.4 million tons. Almost the entire volume of petrol is consumed by the local market.
Since April 2014 SOCAR does not longer export petrol.
“It is not advantageous for us to export petrol, because, on the one hand, quality of petrol made in our country is not very high, it is up to the Euro-2 standard, and on the other hand, its price at the local market is rather high,” explained SOCAR Vice President.
He said at present only Ai-92 petrol is made in the country and Ai-95 and Ai-98 petrol is imported by SOCAR and Azpetrol company.
“In the future we plan to resume AI-95 petrol manufacture. The plan of the Heydar Aliyev oil refinery reconstruction has been worked out, according to which in 2018 Azerbaijan will make Ai-92 and Ai-95 petrol up to Euro-5 standards,” added Mammadov.—0—
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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