New increasing of prices for gas is a correct decision of government, a foreign expert concluded

As the leader of labor group of PA Consulting Group McNeill Watkins reported, the increasing of tariffs is a correct action of Azerbaijan government.

At the present time SOCAR receives 1 000 cubic meters of natural gas for $60, but sells it for 236 000 manats ($1 is manats).

At the same time M.Watkins considers that increasing of tariffs complicates the situation. "Azerigaz" JSC conducts calculation of gas consumption by normative methods. The collection of money is carried out even if the gas is not delivered. If the subscribers will pay by increased tariffs without receiving gas it will complicate the situation" - he said. M. Watkins considers using a part of funds received by "Azerigas" for purchasing and installation of gas counters a proper action.

M. Watkins also noted that in the world practice the industrial and commercial enterprises purchase gas for lower tariffs than the population. "It is connected with the fact that expenses for gas delivery to population are higher. If the industrial enterprise receives the natural gas by a single line, a distribution system is needed for supplying the population, which in its turn requires large expenses" - he said. To his opinion, the introduction of average tariffs for all categories of gas consumers means subsidizing of population by industrial sector.