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-
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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