The price of a 50% rise in the cost of transport

At night on July 30 the Tariff Council in Azerbaijan announced an increase of fares 50%. The Tariff Council always announces an increase in prices at night. The fare was 20 qepik until August 1, and now it will be 30 qepik ($ 0.18). Accordingly, the fares in buses operating on country routes have increased depending on the kilometer distance to 90 qepik.

During this night, the previous day, or even for months the quality of public transport has not improved. In most Baku buses and subway trains, air conditioners do not work, there is no Wi-Fi, there are no elevators in the metro ... " Do you think that 10 qepik will be spent on new trains on the improvement the conditions?" Leyla Mirzagasanova writes in the network. For this night and the previous day, even for months. On most Baku buses and subway trains, air conditioners do not work, there are no Wi-Fi, there are no elevators in the metro ... "These 10 qepik, do you think will go to new compounds or improve conditions?" Leyla Mirzagasanova writes in the network.

10 additional qepik is so meager amount that it is impossible to buy something in Azerbaijan. But if before August 1 for one manat it was possible to go by metro five times, then with new fares, it will be possible to go only three times, and awareness of this reality is tense. The Russian Azerbaijanis compare the cost of travel in two countries in favor of the historical homeland. But the average salary in Azerbaijan (520 manats - 305 dollars) is more than twice less than the average salary in Russia (43500 rubles - 699 dollars), so this comparison is incorrect.

The rise in price on transport was expected, as bus companies and metro authorities always complained about unprofitable work and the need for state subsidies. The company Bakubus completed the 2016 financial year with a net loss of 54.638 million manat; Baku Metro had losses in 2017, despite a subsidy from the state budget in the amount of 45 million manats. From passenger transportation, AZN 44.3 million was raised. Taking into account the amortization (32.5 million manat) deductions, the annual loss of the subway amounted to 12,581,000 manat. The undistributed loss of the Baku Metro is 371.7 million manats.

The fare in the Baku metro is the lowest among the CIS countries and Europe. However, Azerbaijan is an oil producing country, which is building hotels in Russia and other countries because of surplus funds. The state could well continue subsidies to public transport, helping the poor. Wealthy people do not use public transport.

Economist Samir Aliyev predicts the following price increases - for gasoline, then gas and water.

Economist Gubad Ibadoglu supposes that the new price (30 qepik) is a temporary transitional measure to the rise in price to 40 gepik, which will be justified by the lack of 10 gepik coins. "This rise in price will primarily affect prices in taxis and agricultural products, which will become the basis for a new rise in price on transport," he said.

The increase in transport prices will spur inflation because the cost of travel in the subway is a factor in calculating the price of the conditional "consumer basket." After completion of the harvesting company in agriculture, diesel fuel and fuel oil can rise in price, Ibadoglu wrote on the FB.

He suggests that the government take compensatory measures to alleviate the situation of low-income segments of the population; to set preferential fares in the amount of the previous 20 gepik for students and pensioners who use only buses and metro; to distribute travel cards specifically for these layers; introduce travel cards for the day, three days, a week, a month of travel in the subway so that in Moscow, by paying immediately in advance for a month, it is possible to reduce the cost of a one-time trip. It is possible to use hourly maps, allowing during this time to change and take more than one mode of transport. This is especially important for nonresident citizens who travel to Baku every day, for example, from Sumgayit, and on coming to the capital, for those who also use Baku transport.

Gubad Ibadoglu recalls the non-transparent practice of transport companies and the entire Azerbaijani economy, as a result of which millions of manats are appropriated and unproductively spent. During the investigation of the criminal case of extortion of large sums from the former head of the Baku Metro Tagy Ahmadov, he openly stated: "No one's concerned, where do I get three million manats." If there was no large-scale theft, in the state treasury of Azerbaijan, there would be funds for additional subsidizing of transport for the population.