CURRENT TARIFFS FOR NATURAL GAS DO NOT COVER COSTS FOR ITS TRANSPORTTAION, STORING AND DISTRIBUTION, A FOREIGN EXPERT CONSIDERS
Current tariffs for the natural gas in Azerbaijan do not cover costs for its transportation, storing and distribution, although they cover the cost of the gas itself, head of the PA Consulting Group project team McNeill Watkins told Trend.
According to him, the AzerbaijanвЂ™s government increased two times tariffs for the natural gas consumption and they are closer to the prices of gas from вЂњGazexportвЂќ (a daughter company of вЂњGazpromвЂќ).
Watkins considers, increase of tariffs facilitated the improvement of the gas sector, taking into account that Azerigaz JSC will allocate the additional means received to installing the gas meters and improving services.
The natural gas price for all large consumers and the population is set at the level of 236,000 AZM per 1,000 cubic meters since 1 March 2005.