Prices and situation in consumer market

Consumer market

In the first half of 2009 a rise of the retail goods turnover got restored amid continuing rise of the community services and was 9.6%. The amount of retail goods turnover comprised AZN 7248mln.

During January-July 2009 trading networks of Azerbaijan sold population consumer goods at 5.5515 million manat, which is 8.5% more than the same period of last year.

According to the data provided by the State Statistics Committee of Azerbaijan, of the total amount, AZN 3651.1mln was made up of foodstuffs, AZN 1900.4mln - non foodstuffs. The increase in sales on both goods was 10.9% and 3.7% respectively.

During the first half of 2009, every citizen of the country acquired consumer goods and paid services at 136.9 manat that 15.3 manat higher than January-June 2008. In January-June, the average turnover per 1 inhabitant of the country amounted to 106.9 manat ($132.93), which is 10.3 manat higher than the same period of 2008.

In June 2009, turnover amounted to 937.1 million manat (-32.9 million manat compared toMay 2009), including 651.1 million manat (+81.1 million manat) for food commodities and 300 million manat (-100 million manat) for non-food commodities.

In January to June commercial services to population made up 1696.5 million manat, or up 13.1 percent.

The services in June amounted to 321.6 million manat increasing by 53.8 million manat compared to May 2009.

Prices

Prices for consumer goods and tariffs for services reduced 0.6% in June compared to May 2009, but in the first half year, increased by 3.7% compared to the same period of 2008 (data from the State Statistics Committee).

In June, prices for food products reduced 1.1%, for non-food products remained at the previous level, while tariffs for services rose by 0.2%.

Compared to the first half of 2008, food prices rose by 2.1%, non-food - 5.8%, and tariffs of services - 5.4%.

In June 2009, the base index of the consumer prices incurring seasonal changes (fruits and vegetable) and being regulated by the Government made up 99.4% as compared to the previous month, and 104.9% to the same period of the last year.    

The government forecasts inflation in 2009 at 13%.

As compared to the previous month, in June 2009 the index of industrial goods price increased 7.1%, but reduced 36.3% compared to the same period of the last year.

The price in oil and gas production increased 8.8% in June compared to May 2009, but decreased 51.3% compared to the same period of 2008.  

The prices in refining chemical products decreased 1.8% in the month and reduction totaled 24.3% at annualized pace. In June, the prices in metallurgy increased by 2.5% compared to May, but reduced 21.8% at annualized pace.

The prices for electricity, gas and water remained in its previous level in June as compared to May 2009, but grew 1.4% at annualized pace.

·              Oil and gas

1. FEC

а) Oil and gas production

Roughly 24.8 million tons of oil and condensate was produced in Azerbaijan in January-June. This index is by 2.5 percent more than index of oil and condensate production in January-June 2008, the Azerbaijani state statistics committee said.

Major volume of oil and gas condensate production fell on the block of the Azeri-Chirag-Guneshli offshore fields and the gas condensate Shah Deniz field - 20.6 million tons of oil, which is by 3.5 percent more than the same period of 2008.  

Gas production was almost 12 billion cubic meters in Azerbaijan in January-June that an increase of 1.7 percent than in 2008. Roughly 5.5 billion cubic meters of gas fell on Azeri-Chirag-Guneshli (associated gas) and Shah Deniz with a 31.3-percent increase from the same period of 2008. 

b) Oil refinery  

Total volume of oil processing at Azerbaijani oil refineries entering SOCAR (the State Oil Company of Azerbaijan) hit 3 million tons in the first six months compared to 3.6 million tons in the similar period of 2008, SOCAR said.

Oil products are produced at two Baku refineries with capacity of 20 million tons of oil per year. Two refineries enter SOCAR annually processing 7 million tons of oil extracted onshore and offshore owing to own funds.

Processing of oil and production of oil products in Azerbaijan in January-June 2009:

b) Realization

The State Statistics Committee reported that approximately 1.7 million tons of oil products were sold to the internal market of Azerbaijan in January-June 2009, compared to 2.5 million tons in January-June 2008.

Some 454.700 tons of the total volume of oil products was petrol, which is an increase of 12.6 percent from the same period in 2008. The wholesale price for one ton of А-92 gasoline in the internal market (VAT and transportation costs inclusive) is 670 manats and А-95 - 736 manats. According to the State Statistics Committee, Azpetrol received 237,300 tons of gasoline and LUKoil - 75,500 tons.

In January-June 2009, 352,400 tons of diesel fuel was sold to the domestic market, which is by 27.2 percent less compared to the same period in 2008. The wholesale cost of 1 ton of diesel fuel (VAT and transportation costs inclusive) is 485 manats. Azpetrol received 121,500 tons of diesel fuel and LUKoil - roughly 41,200 tons, the state statistics committee reported. The Azerbaijani State Caspian Sea Shipping Company purchased 9,100 tons of diesel fuel.

In January-June of 2009, 182,600 tons of fuel oil was sold to the domestic market, which is 74.8 percent less than the figure in 2008. The wholesale price of 1 ton of М-40 fuel oil in Azerbaijan is 100 manats (including delivery and VAT). According to the state statistics committee, Azerenerji JSC received 118,100 tons of fuel oil and the Heydar Aliyev Oil Refinery Plant 32,300 tons for further refinery.

A total of 162,700 tons of aviation kerosene was sold in this period, 37,4 percent less than in 2008. The price of aviation kerosene is 307 manats per ton (including delivery and VAT).

The sale of petroleum bitumen totaled 99,200 tons, an increase of 46,1 times from 2008. The wholesale price of 1 ton of bitumen BN 60/90 (VAT and transportation costs inclusive) is 160 manats.

The other more than 425,500 tons of oil products were also sold, less by14.5 percent than in January-June 2008.

2. Chemical complex

In Jan.-Jun. Azerkimya state-owned company (production of chemical products) produced 6.2 million cubic meters of nitrogen which is 13.4 percent less than the figure of the same period of 2008, Azerbaijan State Statistics Committee said.

The production of polyethylene, isopropyl alcohol and paintwork materials shrank decreased in Jan.-May. Chlorine oxide was not produced during in Jan.-May.

Production of major types of chemical products in Jan.-Jun. 2009 is as follows:

3. Power engineering 

In six months, Azerenerji (Azerbaijan's largest energy producer) generated over 10.1 billion kilowatt hour of energy compared to 11.1 billion for the same period of 2008, the company said.

Thermoelectric power stations accounted for 9.1 billion kilowatt hour and hydro power stations 1 billion.

In June, Azerenerji generated about 1.3 billion kilowatt hour of energy 1.1 billion of which accounted for thermoelectric power stations and 0.2 billion for hydro power stations.