BAKU, Azerbaijan, December 14. The State Oil Company of Azerbaijan (SOCAR) reported an increase in the cost of gas production for the year 2022, reaching 67.57 manats per 1,000 cubic meters, Trend reports via SOCAR.
This represents a rise of 6.34 manats or 10.35 percent compared to the figures from 2021.
Breaking down the company's total expenses for gas production, the distribution is as follows: material costs accounted for 2.5 percent, fuel costs for 0.3 percent, electricity costs for 0.4 percent, wages for 12.4 percent, contributions to the social insurance fund for 2.8 percent, depreciation of fixed assets for 14.1 percent, repair of fixed assets for 4.9 percent, maintenance of fixed assets for 10.8 percent, transportation costs for 12.4 percent, security costs for 2 percent, mineral extraction tax for 19.1 percent, other taxes for 4.5 percent, expenses for other services for 11.9 percent, and other expenses for 2 percent.
The increase in the overall cost of gas production compared to the previous year can be attributed to higher expenses in fuel, electricity, wages, social insurance, maintenance of fixed assets, transportation, security, mineral extraction tax, and other service-related costs. Specifically, fuel costs rose by 271,000 manats (33.7 percent), electricity costs increased by 151,000 manats (9.4 percent), wage costs surged by 7.612 million manats (16.9 percent), social insurance costs escalated by 1,818 million manats (17.9 percent), maintenance of fixed assets soared by 26,342 million manats (136.1 percent), transportation costs spiked by 7,351 million manats (16.4 percent), security costs rose by 2,742 million manats (48.9 percent), production tax expenses increased by 11,679 million manats (17.1 percent), and expenses for other services saw a substantial rise of 21,400 million manats (74 percent).
The official exchange rate as of December 14 is 1.7 AZN/USD.
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