Will AI-92 and diesel rise in price?

Media reports from Azerbaijan indicate an anticipated increase in prices for AI-92 gasoline and diesel fuels, citing government sources without disclosing specifics. The projected hike, estimated at around 20 cents, is attributed partly to environmental concerns associated with these fuels and their perceived role in hindering the transition to electric vehicles in the country.

Recent developments include the commencement of Euro 5 standard AI-95 gasoline production last month, initially suggesting a potential decrease in fuel prices. Currently, AI-92 gasoline is priced at 1 manat, with diesel at 80 kopecks per liter, both regulated by the Tariff Council.

Despite speculation, Member of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship, Vahid Ahmadov, expressed skepticism regarding immediate increase in a comment for Turan: "I do not anticipate any rises until the New Year." Economist Natig Jafarli echoed similar sentiments, noting global oil price stability and Azerbaijan's self-sufficiency in fuel production as factors mitigating price hikes.

In an interview with Radio Azadlig, Jafarli critiqued environmental motives behind potential price adjustments, citing selective government incentives favoring newer electric and hybrid vehicles over older models. He suggested that any price increases would likely stem from broader economic pressures rather than purely environmental concerns.

Amidst ongoing elections, analysts speculate that the government may delay any unpopular price hikes until after the electoral period to avoid public discontent.

Observers anticipate further clarity from the Tariff Council on the issue as economic conditions and political considerations evolve in Azerbaijan.