Movement for Democracy and Prosperity Urged Tariff Council to Reconsider Decision to Raise Price of Gasoline AI-92

Baku / 17.07.17 / Turan: Movement for Democracy and Prosperity (MDP) issued a statement condemning the decision of the Tariff Council of July 15, 2017 to raise the retail price of AI-92 motor gasoline by 28.5% to 0.9 manat per 1 liter.

MDP recalls that according to the Regulation of the Tariff Council, when making such decisions, the opinion of consumers should be taken into account, as well as the participation of experts.

However, this was not done, and the factors that gave rise to inflation were not taken into account, which caused discontent among the majority of the population. The rise in price of gasoline may entail increased prices for public transport, as well as increase prices for basic consumer goods, as the cost of freight transportation will increase.

According to expectations, the inflation process in the second half of this year will accelerate. Thus, the budget of low-income families will not escape pressure, as real income will be lower than the consumer basket, and this, in turn, will lead to increased social tension and affect the welfare of the population. "It is clear that the government again strengthened the inflation-creating factors, wishing to fill the budget deficit by placing additional burden of expenses on the citizens," the statement says.

The cost of gasoline in Azerbaijan is raised to 0.53 cents, while oil is cheaper in the world market. Gasoline in Azerbaijan is more expensive than in neighboring countries.

"The Tariff Council motivated the increase in gasoline prices by limiting the export opportunities of SOCAR and reducing foreign exchange earnings. This means that the current government again prefers the interests of SOCAR, rather than consumers. However, such a one-sided approach cannot save this body from the quagmire of debt or from losses growing from year to year," the statement goes on.

MDP demands revision by the Tariff Council of the decision on increase of the price for gasoline. Otherwise, the authorities will be responsible for the possible growth of social and political tension in the country, the statement says. -06D--