SOCAR announces plans on production of AI-95 gasoline in Azerbaijan

Photo: SOCAR announces plans on production of AI-95 gasoline in Azerbaijan / Oil&Gas

Baku, Azerbaijan, April 10
By Emil Ismayilov - Trend:

The State Oil Company of Azerbaijan Republic (SOCAR) does not intend to resume production of gasoline AI-95 at Baku Oil Refinery named after Heydar Aliyev, the company reported.

The stoppage of production of AI-95 gasoline, transition to its imports, as well as free prices on this brand of gasoline associated with non-compliance of opportunities of SOCAR processing capacity with the republic's need for high octane gasoline, increased several times in a short time.

"At present, overhaul works are carried out in the gasoline producing facilities. Upon the completion of repair works, AI-95 gasoline will not be produced at the plant," the report says.

The report also said that as AI-98 gasoline was not produced in Azerbaijan, its price was not regulated by the state. The decision on free market conditions on gasoline imports with 95 and 98 octane ratings allows traders engaged in this activity, to ensure delivery of quality products and meet the needs of consumers in a healthy competition environment. It is not accidental that after the adoption of the decision prices for AI-98 gasoline decreased in the country.

SOCAR focused its efforts on the implementation of construction of a new oil and gas processing and petrochemical production complex in the country. After commissioning of the new complex in Azerbaijan, production will be ensured and the needs in high-octane fuel which meets Euro-5 ecological standard will be satisfied, the report said.

The company also reported that negative information spread by some print and electronic media on the transition of free market prices of gasoline with 95 and 98 octane ratings regarding SOCAR does not correspond with reality.

Earlier, the prices of domestic production of AI-92 and AI-95 gasoline were regulated by the Tariff (Price) Council. But after the stoppage of AI-95 gasoline production its import into the country has started.

Azerbaijan's Cabinet of Ministers has reduced the rates of customs and excise duties for the import of high ecological standard gasoline.

This makes it possible to import Premium Euro-95 and Super Euro-98 gasoline at lower prices and sell them at free market prices.

After the start of the import gasoline with 95 octane, fuel prices of this rating increased from 0.8 manat (set by the Tariff Council on domestically produced AI-95gasoline) to 0.93 manats per liter. In turn, the cost of gasoline with 98 octane rating has been reduced from 1.5 manat to 1.03 manat per liter.

The AI-95 and AI-98 gasoline brands account for approximately 10 percent of total consumption in Azerbaijan and it is possible to say that these are not used in the sectors of production and rendering services.

The official exchange rate on April 9 is 0.7844 AZN / USD.

Translated by S.I.
Edited by C.N.

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Tags: gasoline , SOCAR