Рђlihan Melikov: No rise of tariffs for purchasing and sale of domestic gas expected in 2006 in Azerbaijan

Oil&Gas Materials 27 December 2005 16:18 (UTC +04:00)

No rise in tariffs for purchasing and sale of domestic gas is expected in Azerbaijan in 2006, even with the account of the increase in price of the import fuel from Russia, the chairman of the Azerigaz Joint Stock Company (JSC) Alihan Melikov told the news conference on 27 December 2005, Trend reports.

According to him, the next year Azerbaijan will receive 4,5 billion cubic meters of gas from Russia and its price is defined as $110 per 1,000 cubic meters against $60 in 2005. В"The decision on rising tariffs is taken by the Cabinet of Ministers and the Tariff Council. However, we have not got any instructions from the government to raise the price”, he said.

Melikov noted, the gas tariffs in the country may be revised only after accomplishment to provide all consumers with gas meters. “If 90% of the population will have gas meters, we may revise the tariffs for gas”, he said. The single price of 236 AZM per 1 cubic meter of gas is applied currently for all categories of consumers in Azerbaijan.

The JSC chairman noted that since the start of the year the Azeriqaz JSC installed about 260,000 gas meters. Purchasing of them is performed within the framework of the edict of the Cabinet of Ministers of Azerbaijan N43 of 8 February 2005. Melikov noted, in 2006 the Azeriqaz JSC plans to install over 500,000 gas meters and till 2008 Azeriqaz intends to complete installation of gas meters in the country.