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Natural gas trade in the domestic market of Azerbaijan was an unprofitable business

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At its meeting on June 30 the Tariff Council of Azerbaijan considered the appeal of SOCAR and made an appropriate decision on tariffs for natural gas.

According to the decision, 1200 cubic meters per year will be calculated for the population at the current tariff – 0.1 manat per cubic meter, from 1200 to 2500 cubic meters per year – 0.2 manat, and more than 2500 cubic meters per year – 0.25 manat.It is noted that this decision will not affect the cost of electricity.

The reasons for the revision of gas tariffs are cited as increased consumption, expansion of gas supply coverage and increased costs because of an increase in the number of subscribers by almost 18%.

The Tariff Council indicates that compared with 2017, when the last tariff regulation came into force, the total gas consumption by the population increased from 2.7 billion cubic meters to 3.7 billion cubic meters per year, and this caused an increase in the loss in gas supply, which is repaid at the expense of the state budget.

In addition, to prevent an increase in the price of electricity, the tariff for natural gas supplied to power plants was increased by only 0.01 manat – up to 0.13 manat.

To stimulate the transition to environmentally clean fuels and reduce the cost of public transport using compressed gas, the tariff for gas supplied to filling stations selling compressed gas (CNG) has been reduced from 20 qepiks to 13 qepiks. The decision entered into force on July 1, 2021.

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