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Next rise in prices of oil products not expected in nearest future

Oil&Gas Materials 6 January 2006 20:32 (UTC +04:00)

The retail prices of some oil products were increased at the Azerbaijani Tariff Councils 5 January 2006 decision. The diesel fuel retail price grew from 18 gepiks to 36 gepiks per liter, light kerosene - 16 gepiks to 36 gepiks, heating fuel 11 gepiks to 36 gepiks. The jet fuel retail value increased from 210.7 to 280.6 new manats per ton, Trend reports referring to the press release spread by the State Oil Company of Azerbaijan (SOCAR).

The message says that the reasons for rise in the prices of the oil products are as follows: approaching of the Azerbaijani oil product prices to international ones (if earlier diesel fuel retail price was 3 times less than world one, light fuel - 4 times, jet fuel - 2.5 times, now the difference ranges from 20% to 30%), exclusion of mixing of different oil products and their sale through retail network that will lead to improving of quality oil products; prevention of illegal oil product export from the country. The rise in the prices will allow avoiding of the oil product purchase in the interior market, change of their quality and sale in the markets of the neighbor countries at low prices. In accordance with estimations, around 15,000 tons oil was monthly sold in such way. Both the country and SOCAR incurred losses.

The message says that the increase of the internal prices of the oil products is not expected in the nearest future. Despite the rise in the value of the imported natural gas, the increase of the internal gas price is not expected. Besides, the rise in the retail prices of the diesel fuel must not lead to increase of fare by public transport, as the current fare bases on the value of gasoline, which was not subjected to changes. Rise in the value of the light kerosene must not affect the social state of the poor people. In particular, refugees and internally displaced people will continue to receive light kerosene in the appropriate amount.

For comparative table of prices of oil and gas products in Azerbaijan and neighbor countries see annex.

Comparative table of prices of oil and gas products in Azerbaijan and neighbor countries is as follows:


Country

Currency

Diesel fuel

Unleaded petrol

petrol

Currency

Diesel fuel

Unleaded petrol

petrol

Currency

Diesel fuel

Unleaded petrol

Azerbaijan

USD

0,39

0,39

AZM

1 800,00

1 800,00

AZN

0,3600

0,3600

Georgia

USD

0,68

0,70

AZM

3 104,89

3 234,26

AZN

0,6210

0,6469

Russia

USD

0,56

0,61

AZM

2 563,60

2 786,53

AZN

0,5127

0,5573

Ukraine

USD

0,68

0,70

AZM

3 122,56

3 214,40

AZN

0,6245

0,6429

Kazakhstan

USD

0,44

0,45

AZM

2 020,48

2 066,40

AZN

0,4041

0,4133

Belarus

USD

0,54

0,66

AZM

2 479,68

3 030,72

AZN

0,4959

0,6061

Currency rate for 06/01/2006

06/01/2006

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