TODAY.AZ / Business

Growth of Azerbaijani gasoline prices not to affect passenger, freight traffic

15 July 2017 [15:36] - TODAY.AZ

By Trend

The increase in the retail price for 92 RON gasoline won’t affect cargo transportation, public transportation, including regular passenger transportation by buses, Azerbaijan’s Tariff (Price) Council told Trend July 15.

Earlier, the Council said in a message posted on its website that it decided to increase the retail price for 92 RON gasoline by 20 qepik (nearly 12 cents as of July 15).

In accordance with the decision of the Council, starting from July 15, the 92 RON gasoline costs 90 qepik (nearly 53 cents as of July 15).

According to the Tariff Council, this step was taken with the aim of bringing the motor fuel produced in Azerbaijan to the level of European standards, improving the ecological environment and meeting the growing demand of population.

“Diesel fuel is largely used in this sphere, as in passenger and cargo transportation by maritime transport, and a number of buses run on LNG. As for the air transportation, not the 92 RON gasoline, but jet fuel is used in this field. As it can be seen, the change in tariffs won’t affect freight and passenger transportation, since the increase doesn’t apply to diesel fuel, aviation gasoline, liquefied and compressed gas,” the Tariff Council told Trend.

Touching upon the activity of taxi services, the Tariff Council said that the price increase will have a slight impact on those drivers who use gasoline-driven cars.

“If a car runs on 92 RON gasoline and 10 liters of gasoline is used for every 100 kilometers, the consumption will increase by 2 qepik per kilometer. In other words, the cost of travel for 10 kilometers will go up by 20 qepik. There is sufficient competition in this field, so if any company resorts to an inappropriate increase in prices, the company may lose its clients,” according to the Tariff Council.

The increase in tariffs has been introduced by taking into account the need for modernization in the oil refining sector, as well as changes in the exchange rate of the Azerbaijani manat in recent years, restrictions on export opportunities of the country’s state oil company SOCAR due to the growth of domestic demand and a decrease in currency earnings, according to the Tariff Council.

URL: http://www.today.az/news/business/163210.html

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