Expect fare on buses (UPDATED)

Higher prices for gasoline and diesel price will not cause increase of fares on urban and suburban buses, said with certainty the heads of the press services of the two ministries - economic development and transport. However, bus drivers think differently.

One of the city bus drivers, who requested anonymity, told Turan, that the rise in price of diesel fuel increases its daily costs by 10 manat - from 25 to 35 manat.

If the fare plan does  not fall, he'll have to work a day only for 10 manat, which is not profitable. Therefore, either the plan should be reduced or fares  increased.  Likely the second option will be preferred, because the "masters" (renters)   of routes also will not sacrifice  their  interests.

This is the opinion of many other drivers.

Independent experts do not rule out that the prices will be increased for travel during the next wave of increases  - electricity, gas, water, which may follow from January or March 2013.

However, today we observe  numerous cases of   the increase  of fares on buses by drivers,  that caused conflicts with  passengers. –06D--

2013 December 03 (Tuesday) 11:36:52

Predictions of increasing fuel prices justified; higher prices are not due to objective reasons and take place because of the conservation of monopolies and lower oil revenues. Gubad Ibadoglu wrote about it on his Facebook page, noting that the price increase will continue.

"Large taxpayers as Azenergy, Azerbaijan Railways, Caspian Shipping Company, AZAL and Azersu demonstrated financial incompetence, because of what the state budget has a debt of 2.4 billion manats. Unable to collect the money, the government decided to increase the cost of excise duties within expanding VAT and consumer taxes. In other words, the government chose to get into the pockets of citizens," says the expert.

Gubad Ibadoglu is sure that soon Tariff Council will decide to raise fares on urban and suburban transport.

Then will follow the rise in the prices of electric energy and gas consumption. All this will automatically lead to higher prices for food and all kinds of services. "So the next year we should expect double-digit inflation," he said.

As for concrete figures, for car owners who use petrol A 92 monthly expenses will increase by an average of 32 manats, and for those who use gasoline A 95 - by 40 manats.

Leader of Musavat Isa Gambar on his Facebook page wrote about it that it was necessary to discuss the beginning of peaceful protests against rising prices. The people must have their say, he said.

The National Council leader Jamil Hasanli told Turan that he considers unacceptable such a serious rise, given the low level of wages and social benefits.

Such an increase in gasoline prices in a country that produces oil is inexplicable, he said. It is noteworthy that in some countries buying gasoline energy prices are lower than in Azerbaijan. For example, in the U.S., where incomes are much higher than in Azerbaijan, energy prices are lower, Hasanli said. -05B-

2013 December 03 (Monday) 00:17:40

By the decision of the Tariff Council from December 3, 2013 retail price of gasoline, diesel fuel and wholesale price of some oil products went up.

The statement of the Tariff Council released on Tuesday reads that retail price of 1 liter of AI-95 gasoline is 0.80 AZN (earlier 0.6 AZN), retail price of AI-92 and AI-80 gasoline is 0.70 AZN per liter (earlier 0.55 AZN). 

Price of 1 liter of diesel fuel will be 0.60 AZN against previous 0.45 AZN.

By the Tariff Council decision, natural gas sold to the enterprises generating power, manufacturing aluminum and steel enterprises has gone up as well. Natural gas will be sold to the enterprises of chemical industry and metallurgy at 0.80 AZN per 1000 cub.m. 

Last time oil products prices went up in the country in December 2007.

The experts believe that the current rise in oil products prices is connected with the fact that next year the state budget is forecasted to have a deficit of 2 billion AZN. Rise in oil products prices will   lead to gradual increase in prices for all goods and services. This will lead to growth of tax collection and reduction of budget deficit. In addition, this year the government will most likely end with the pro-ficit budget and the remains will be also used to cover the state budget deficit for 2014.—0--