The Tariff Council (TC) agreed with the State Oil Company of Azerbaijan (SOCAR) in respect to increase of the mazut tariffs. The rise in the mazut prices would lead to the increase of the subsidy annually allocated from the budget of Azerenerji, Trend reports quoting Heydar Babayev, the chairman of TC.
The public budget for 2006 envisages allocation of 1,677trln manats (335.4m new manats) for these purposes i.e. it will allow carrying out mutual set-off between the debts of Azerenerji to SOCAR and arrears of the oil company to the public budget. Besides, rise in the mazut prices may lead to the increase of the energy prices, as power stations partially use mazut in the energy production.
The Council took measures on increase of prices of diesel fuel, light kerosene, stove and jet fuels to reduce subsidy for Azerenerji. This increase will allow coverage of some expenses of SOCAR, which sometimes faces with the problems in wage payment to its employees.
During consideration of the rise in oil product prices TC did not take into consideration the coverage of the SOCARs expenses arisen in relation to the increase of the value of the Russian imported gas.