Why is AI-95 petrol phased out by SOCAR?

Why did SOCAR decide to stop Ai-95 petrol production?

Experts of the Caspian Barrel Centre of Oil Studies said that there are many reasons for that. “As soon as SOCAR has realized that the new oil refinery in Garadag district of Baku will not be opened before 2023-2025 and that demand in petrol grows by about 10-11% a year, it has decided to make this step to ensure stability at the local market,” the Centre said.

Demand in AI-95 at the local market is about 10%. SOCAR has decided to focus on production of low-octane petrol and AI-95 and AI-98 will be put on free sale. Therefore, the oil products market will be partly liberalized. 

The price of imported Ai-95 petrol   will no longer be 0.80 AZN (a little bit over $1.00), but 1 AZN and probably even more.

The new conditions of allotment of credits to car buyers by the banks were announced yesterday. They were toughened so much that not everyone would like to buy car in Azerbaijan. From now on the buyers should pay minimum 50% of the car price to get credit and submit information about their paying capacity. The buyers should also submit the information about lack of any other debts, including public utilities, to the banks. Once all the stages are passed, the credit will be allotted with the interest rate between 14% and 23% a year (depending on the number of years the credit is allotted). If the car is used, then the down payment will be increased up to 70-80% of the car cost and the credit interest rate will go up to 17-27%. 

These conditions were created to reduce import of cars into the country. In 2013 104,000 cars were delivered into the country, of which 60% are used.—0—