The State Oil Company of Azerbaijan (SOCAR) informed Trend on Monday (8 January 2007) that rise in world prices of oil and oil products and maintenance of low prices at the domestic market of Azerbaijan were the key source of negative milestones. With this respect rise in petrol prices at the domestic market of Azerbaijan is good and effective step for the Azerbaijan economy.
The Tariff Council of Azerbaijan has made a resolution on introducing new tariffs of energy resources beginning from 8 January 2007. As per the resolution of Council, the price of petrol A-95 is increased to 60 gepiks, Рђ-92 and Рђ-80 - 55 gepiks, diesel fuel вЂ" 45 gepiks.
According to the SOCAR representatives, upgrade of oil refinery enterprises, which are part of SOCAR, is being carried out.
As a result the quality of petrol is brought up to international standards. The wholesale prices of the product remain lower than those in the rest countries of the region despite of increase, the company said.
The officials of the Ministry of Industry and Energy said that low prices of petrol at the domestic market in Azerbaijan and increase of prices at the world markets causes contraband of petroleum products from the country. Rise in fuel prices assists in the resolution of the problem.