What is behind SOCAR plans to phase out production of high-octane gasoline ?

BAKU/25.02.14/Turan : Prices of high-octane gasoline at gas stations will be fixed up . Government still holds a liter of AI- 95 at 80 kopecks , AI- 98 - 1.5 manats. Soon, however , according to Energy Minister Natig Aliyev , all market participants will be able to import AI-95 , creating real competition .
According to the laws of economics , the prices in this situation must fall , but statistics (http://autotraveler.ru/spravka/benzine-in-europe.html) says that the only country from where affordable high-octane gasoline can be imported is Russia, where the retail price for AI-95 is 0.68 , and A-98 is at 0.7 euros. Other manufacturers are more expensive. According to the decision of the Government of Azerbaijan on January 21 of this year, imports of AI-95 and AI- 92 are exempt from customs duty and excise tax until June 2014 . Rate of duty has been reduced from 15 to 0 % and the rate of excise duty on petrol imports of these brands (http://www.customs.gov.az/ru/taktcizi.html) reduced from $ 250 to $ 1 per ton.
According to an official statement of the SOCAR president Rovnag Abdullayev , he is also a supporter of the liberalization of prices for gasoline AI-95 and AI- 98. "Why the government should subsidize drivers of jeeps , fill the fuel tank fuel with a high octane ? Rates it need not be fixed. State company changed pigmentation gasoline AI -92 to unscrupulous people mingled it to A-95 , but need comprehensive measures - otherwise face a mass forgery and social injustice, " he told reporters.
Chairman of the Center for Economic and Social Development of Azerbaijan Vugar Bayramov also a supporter of higher prices for high-octane gasoline . According to him , the price of 95 octane with the liberalization of prices could rise to 20%, but the social situation is not affected . " The price of gasoline 92 octane and diesel ( the most popular among the population ) remains fixed, and AI-95 and AI- 98 is poured into the expensive machines that are not available to the average consumer," he said.
As Turan said the Head of the Petroleum Research Shaban , Azerbaijan gasoline with high octane number is produced by further additives , which increases production costs. There are also important differences as local and European gasoline AI -95 , so drivers profitable to buy European products . In addition , the total local production of gasoline is 1.4 million tons per year , and is growing steadily. Because Azerbaijan to meet the massive demand for fuels to increase power generation better AI- 92 and diesel fuel , he said.
According to some reports , the impending " fuel liberalization" of prices in Azerbaijan has no relation to the care of social welfare . This is evidenced , in particular , the decision of the Tariff ( Price) Council of 3 December 2013 a significant ( one-third ) increase in retail prices of diesel and 92 octane . In addition, high-octane gasoline refuel not only jeeps or supercars , but economical and popular European small and minicar . European, Japanese and Korean manufacturers , even if the new technology and adapt under the A-92 , it is done in limited quantities for sale on the territory of the former USSR , where the quality of the AI- 95 is much lower than RON 92, while RON 98 is almost not produced.
Azerbaijan , according to official statements, already imports AI-98 , however, the State Statistics Committee data for the past year , these figures are not reflected . According to the State Customs Committee , in 2013, imported petroleum products , minerals , bitumen and other combustible materials in the amount of $ 143.23 million with no breakdown by positions.
Some experts believe it is no accident SOCAR recent years, buying up shares of a number of refineries in Eastern Europe and Turkey. This means that Azerbaijan petrol AI-95 , as well as A-98 , it will be exported under the control of the enterprise , and import - accountable to the company. Due to the zero duty and excise symbolic local officials monopolist will have an additional net income. -17D-