Rise in Prices for Gasoline, Diesel Fuel Causes Sharp Criticism in Society

Bakı / 05.01.21 / Turan: The decision of the Tariff Council to increase retail prices for AI-92 motor gasoline and diesel fuel drew criticism during discussions on social networks.

Recall that from January 5, the price of 1 liter of AI-92 gasoline was set at 1 manat (an increase of 11%), and diesel fuel - 0.8 manat (33%).

If the increase in diesel fuel prices is dictated by concern for the environment, then the government could demonstrate this differently.

“With additional revenues from higher fuel prices, the government could subsidize imports of electric and hybrid vehicles. Cars worth up to 20,000 USD could be subsidized 25% of the cost, and 20,000-30,000 USD - 20%. In addition, electric and hybrid cars should have been imported duty-free and at a zero tax rate,” economist Rovshan Agayev said.

According to him, farmers should also be compensated. “All activities of the agricultural sector are based on diesel fuel. In Azerbaijan, 70% of diesel is used in transport, 30% in the agricultural sector. The current rise in prices will cause additional costs in the agricultural sector by 70 million manats, and in the transport sector by 300 million manats per year. Ultimately, all this will hit consumers' pockets, ”the economist believes.

Doctor of Economics Gubad Ibadoglu also believes that prices will rise in other areas. "Due to the increase in transport costs, taxi services, consumer goods, building materials, etc. will increase. The rise in prices will mostly affect agriculture, where diesel is used a lot," Ibadoglu said.

According to the words, 1 liter of gasoline in Azerbaijan is more expensive than in the state of Colorado. "This is not the limit. Prices for other public services will rise, including transportation, water supply, and electricity supplies. Preparations for devaluation are underway,” Ibadoglu said.

He considers it incorrect for the Tariff Council to compare prices for gasoline and diesel fuel in Azerbaijan with prices in Georgia, Belarus, Ukraine, Turkey, since these countries import fuel.

“If we compare the situation in Azerbaijan with oil-producing countries - Turkmenistan, Kazakhstan, Iran, Iraq, Kuwait, Indonesia, Egypt, Libya, Oman, Bahrain, Saudi Arabia, Venezuela and even the United States, it turns out that we have prices for gasoline and diesel fuel higher than in these countries,” Ibadoglu said.

The head of the Umid party IgbalAgazadeh believes that the increase in fuel prices will negatively affect the living standards of the population, cause a significant increase in the cost of food products of all types. “We have a sufficient number of socially weakly protected citizens. Who and what does it serve to do this in a pandemic? People, along with the disease, are fighting for survival.

Instead of lowering prices, paying utility bills at the expense of the state, looking for ways to pay child benefits, they raise prices,” Agazadeh said.

Expert economist Natig Jafarli agrees that the increase in fuel prices will cause a rise in prices for agricultural products, tobacco, transport, and logistics.

Lawyer Alasgar Mammadli believes the sudden decision of the Tariff Council is contrary to the law. “According to article 29.1.25 of the law on obtaining information, information on the conditions for the offer of goods and services of entities dominating the commodity market or possessing a natural monopoly or exclusive rights, changes in these conditions and prices must be made public at least 30 days before the introduction of changes in the conditions offers of goods or the conditions themselves,” said the expert.

PFPA leader Ali Karimli believes that the quarantine that has been going on in the country for 10 months has already worsened the socio-economic situation. “The people expected benefits from the government, and the authorities again went on to raise prices. He also expects an increase in prices, primarily for food. — 03B06-