Tariff Council"s decision unreasonable - economist

The decision of the Tariff (Price) Council (TC) to raise retail fuel prices, is contrary to the principles of the Law of the Republic of Azerbaijan "On administered prices" and Article 3.15 of "Regulation on TC of the Azerbaijan Republic," said the Chairman of the Center for Public Initiatives, economist Gubad Ibadoglu in a talk with Turan.

TC should conduct research and analysis of economic feasibility and effectiveness, the optimality of the market requirements and the purchasing power of the population. If such studies were carried out, their results would be certainly made public, he said.

Ibadoglu calculated that drivers' fuel costs will rise by an average of 32-40 manats a month. It is about 8-10 % of the average wage. In other words, the government takes back from the population 10 % of the increase in wages made in September this year, he said ironically.

The government did not conceal plans to raise tariffs on fuel, which was incorporated in the state budget in 2014. On the excise taxes on petroleum products it is planned to attract to the state budget by 54.9 % or 270.6 million manat more than in 2013. The government is mending its "hole" in revenues for 2014 by taking the funds from the pockets of the citizens. The government demonstrates complete helplessness with the 2.4 bn AZN of tax debts of state monopolies (Azerenerji, Azersu, Azerbaijan Railways, Azerbaijan Airlines, Azerigaz (Caspian Shipping Company) , whose interests it represents. - 08D-