New Wave of Price Increase Starts - Gubad Ibadoglu

The decision of the Tariff Council on increase in prices for gas and electricity will have psychological and economic consequences, the economist Gubad Ibadoglu said.

Commenting the TC decision on his Facebook profile, the expert pointed out that the economic consequences of this decision will be long-term and lasting.

According to him, all goods will rise in price, which includes the cost of gas and electricity. According to him, the main impact will be on the production of bread and bakery products and on vehicles running on electricity and gas.

“Thus begins a new wave of price increase. It is likely that in the near future there will be decisions about the price of water, gasoline and other fuel products, whose prices are regulated,” Ibadoglu wrote.

Recall that the Tariff (Price) Council of the Azerbaijani government revised energy prices on November 28. The tariff for natural gas for the population, the annual consumption of which does not exceed 1,500 cubic meters, is maintained at 0.1 manat per cubic meter. The use of gas in excess of 1,500 cubic meters to consumers from the same group will cost 0.2 manat per 1 cubic meter.

In addition, the wholesale price of a kilowatt-hour of electricity was increased from AZN 0.043 up to AZN 0.057.

At the level of 0.07 AZN retained the retail price of one kilowatt-hour of electricity for consumers whose monthly electricity consumption does not exceed 250 kilowatts / hour. Over and above the specified amount electricity consumers will have to pay AZN 0.11 for a kilowatt / hour.    ----71D