Azerbaijan, Baku, July 1 / Trend , E. Ismayilov/
Increase in prices of gas supplied to Azerbaijani customers is an unbiased step under conditions of market economy, Azerigaz Economy and Forecast Department Head Tofiq Allahverdiyev said.
"Azerbaijan is a part of the global market economy which necessitates regulation of gas prices," Allahverdiyev said at a new conference.
The value of 1,000 meters of natural gas for domestic customers increased from 47.2 manat to 100 manat upon the decision of the Tariff Council on July 1.
He said previous gas prices were not profitable. Azerigaz buys SOCAR gas at 42 manat for 1,000 cubic meters including VAT. Operational expenditures for supply of gas to customers vary from 20 manat to 30 manat.
"So, previous prices were not profitable," he said.
He said one of the main objectives of increasing gas price is to obtain revenue to maintain gas supply and resolve tasks set out as a part of Azerbaijan's gasification.
"This program requires a significant investments and the company must make profits to implement it," Allahverdiyev said.
This year Azerigaz should receive 11.8 billion cubic meters of gas, of which 5.5 billion will be transferred to Azerenerji for electricity. Azerigaz will 5 billion 3 billion will be supplied to customers and 1.1-1.2 billion to industries and 345 million will be transferred to the Nakhchivan Autonomous Republic.