Azerbaijan, Baku / Trend corr. I.Khalilova / The Azerbaijani Government will not subsidy the fuel-energy sphere in Azerbaijan in 2008. Azar Bayramov, the deputy Finance Minister, said that the high price for electric energy caused increase of collection payments from subscribers for used energy so the government will not allocate subsidies to the Azerenergy in 2008.
Approximately 90% of payments were collected from subscribers for used electric energy, the Azerenergy electric energy producing company reported.
According to Bayramov, the high price for chemical production enables the Azerkimiya state company to cover its expenditures.
The Cabinet of Ministers made decision to make changes in the excise rates of oil products, as well as the excise tax rate on produced crude naphtha by chemical enterprises reduced in order to back the functioning of Azerkimya on 6 January 2007. Earlier the State budget allocated subsidies for purchase of naphta on reduced prices from the State Oil Company of Azerbaijan (SOCAR).
Today one litre of virgin fuel is imposed by 8%. The decision was made after the discussions by the government on 13 March. The discussions were dedicated to the interruption of Azerkimya. It was decided to restore the operating of the company which was suspended for a month.