Rise in Price of Gasoline Caused by Corporate Interests - SOCAR

Baku / 15.07.17 / Turan: The rise in prices for motor fuel is caused by two reasons, the economist Gubad Ibadoglu told Turan IA, commenting on the decision of the Tariff Council to raise the retail price of AI-92 gasoline by 28.5 percent. According to him, first of all, this is due to the current state of SOCAR.

"By this increase in prices, the government wants to save SOCAR from debts and losses growing every year. So the current rise in price is conditioned by SOCAR's corporate interests," Ibadoglu said.

On the other hand, the government also has its own interests. So, SOCAR has budgetary obligations, and the increase will increase the revenues of the treasury.

Another reason is to attract more AZN to the turnover.

There are also goals of preserving the current rate of AZN. In connection with the rise in price, the expenses of the population will also increase. And this means a reduction in the savings of citizens and their ability to buy foreign currency," the economist believes.

Ibadoglu considers unfounded the Tariff Council's claims that even after the current price hike gasoline in Azerbaijan is cheaper than in the CIS countries and the region.

"Gasoline in Azerbaijan is more expensive than in Turkmenistan, Kazakhstan, Iran, and even in Georgia, which Azerbaijan sells fuel," Ibadoglu said.

He believes that the current rise in price will lead to an increase in inflation from the current 13 percent to 15-20 percent.

The day before, the Tariff Council decided to raise the retail price of AI-92 gasoline from 0.7 to 0.9 manat (from 0.41 dollars to 0.52 dollars). -06D--