Azerbaijan not expect considerable inflation growth due to rise in retail prices of oil products
The rise in prices of some oil products will lead to inconsiderable inflation growth, Heydar Babayev, the Economic Development Minister, also chairman of the Tariff Council, said to a news conference on Friday, Trend reports. According to Babayev, at the first stage 2-3% inflation growth is possible in agriculture. The government intends to keep to the forecast on inflation rate on the results of 2006.
Meanwhile, the Minister regards granting of agricultural address subsidy as possible. The Ministry received subsidy from the public budget from 1997 to 2001 to cover difference between real and privileged prices.
The Minister did not excluded increase of price in transport sector in relation to the increase of the diesel fuel tariffs. It is possible at the fist stage, as a part of transport uses diesel fuel, other - petrol. The first got more incomes than the latter. One of the goals in increase of diesel fuel tariffs is to raise the difference and strengthen competition, Babayev stressed.
According to Babayev, there is not similar difference between petrol and diesel fuel in any other country. These prices are increased in Azerbaijan, but they still remain lower than world prices. For example, diesel fuel costs 70 cents per liter in Georgia, 51 cents - Russia, 40 cents - Azerbaijan. The difference allows exporting of the oil product to the countries, where its price is higher. Besides, there are many cases of mixing of diesel fuel with other products.
At present the Azerbaijans transport sector consumes around 350,000 tons diesel fuel, the government told Trend.