Azerbaijan Faces Public Backlash Over Utility Price Hikes

Azerbaijan Faces Public Backlash Over Utility Price Hikes

The latest round of utility price increases in Azerbaijan, effective January 2, has sparked sharp criticism from opposition parties and civil society, highlighting systemic issues in the management of state monopolies. The Tariff Council’s decision to raise prices for electricity, natural gas, water, heating, and even pharmaceuticals has provoked public discontent, with opposition leaders accusing the government of exacerbating the country’s socio-economic challenges.

The opposition party Musavat, led by Isa Gambar, condemned the increases, accusing the government of misleading the public with claims of economic progress. “They always talk about rising wages and pensions, but these increases pale in comparison to the growing utility costs,” Gambar said in a statement. He directly attributed the decision to President Ilham Aliyev, claiming that the Tariff Council merely rubber-stamps presidential directives.

Government-affiliated media sought to justify the price hikes with promises of improved services and infrastructure investments, but Gambar dismissed these narratives as insincere. He argued that while incremental wage and pension increases are promoted throughout the year, utility price hikes occur suddenly and significantly, creating a false illusion of progress.

In a Facebook post, Gambar illustrated his critique with an AI-generated cartoon, mocking the January 2 price adjustments as a symbol of the government’s disregard for the population’s financial well-being.

Independent economist Natig Jafarli called the price hikes "economically unjustified," attributing them to inefficiency and corruption in state enterprises such as SOCAR (State Oil Company of Azerbaijan), Azərenerji, and Azərişıq. “These companies are riddled with inefficiency and poor financial management. Instead of addressing these issues, they shift the burden onto the public,” Jafarli asserted.

Osman Gunduz, head of the Multimedia NGO, questioned the rationale for the price increases, particularly claims linking them to rising production costs. “Most of Azerbaijan’s electricity is generated from domestic natural gas. What justification is there for these hikes?” he asked in a Facebook post. Gunduz called on the Anti-Monopoly Committee to investigate state monopolies for potential abuses of power.

Revised Tariffs and Their Impact on Households:

Heating

  • Monthly rates for unmetered households doubled to 30 qapiks per square meter from the previous rate of 15 qapiks.
  • Metered households now pay 14.6 manats per gigacalorie.

Natural Gas

  • For annual consumption up to 1,200 cubic meters, tariffs rose 4.2% to 12.5 qapiks per cubic meter.
  • Consumption between 1,200 and 2,500 cubic meters saw a 10% increase to 22 qapiks per cubic meter.
  • For usage exceeding 2,500 cubic meters, prices increased 20% to 30 qapiks per cubic meter.

Electricity

  • Consumption up to 200 kWh per month now costs 8.4 qapiks per kWh, a 5% increase.
  • Consumption between 200 and 300 kWh rose by 11.1% to 10 qapiks per kWh.
  • Consumption above 300 kWh increased by 15.4% to 15 qapiks per kWh.

These revised tariffs have significantly raised the cost of living for households, adding to the mounting public dissatisfaction.

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