Increase of Oil Prices Results in Increase Remittances to the Azerbaijan Public Budget

Business Materials 8 January 2007 12:58

Rise in domestic prices of oil products will cause an additional 200mln manats in remittances to the Azerbaijani public budget. Trend repots that the Tariff Council of Azerbaijan has said that the prices of domestic stove fuel and kerosene (KO-20) have been confirmed at 0.45 manats per 1 ltr.

The Tariff Council of Azerbaijan has also adopted a resolution on the change of electricity prices. It explained that with the rise in mazut and gas prices, the direct price for electricity generation has also increased.

Despite the proposals on the increase of wholesale price of electricity to 0.052 manats per 1 KW/h and transit tariff to 0.03 manats, the Tariff Council adopted them at a level of 0.041 and 0.02 manat respectively.

The resolution on the application of new tariffs was adopted with respect to solve problems with the sale of electricity at small private hydro-power stations, promotion of production and with the consideration of entrepreneurs' interests for establishing wind and hydro-power stations, as well as amid electricity importation into the country.

As a result the wholesale price of 1 KW/h of electricity generated at small hydro-electric power stations at the level of 0/025 manats and wind power grids - 0,045 manats per 1 KW/h.

Moreover, the Tariff Council has unified the electricity tariffs for all consumers irrespective of the category and defined it as 0.06 manats.

The gas prices for consumers (excluding community consumers) were increased to 100 manats per 1,000 cu m. The figure was kept at the level of 47.2 manats per 1,000 cu m.