Gasoline and rising prices again – Will there be another price increase? |
Expert: “I believe that the government should return the prices of EU-95 and EU-98 gasoline under the umbrella of the Tariff Council.
The price of “AI-95 Premium” brand gasoline is expected to rise in Azerbaijan. The website Haqqın.az reported on this. Volatility in the world energy market is cited as the reason for the increase in the price of gasoline.
It should be noted that currently the price of 1 barrel of “Azeri Light” brand oil is 118-120 dollars changes around. However Azerbaijan since it is an oil-processing country, it has different brands of oil-derived products in the domestic market – diesel and gasoline prices there is a possibility to keep it stable.
But this does not apply to “A-95 Premium” and “A-98 Super” brands of fuel. because Azerbaijan imports these brands of gasoline… from abroad. The production process of “A-95 Premium” brand gasoline, which is used more often in our country, has come to a halt.
It should be noted that the price of “A-95 Premium” and “A-98 Super” brands of fuel increased for the last time on September 15 of last year. Currently, “A-98” is sold for 1.9 manats, and “A-95” is sold for 1.6 manats. Before that, the price of 1 liter of “A-95” was 1.45 manats, “A-98” gasoline gasoline and it was 1.6 manats.
It should be noted that the price of “A-95 Premium” and “A-98 Super” brands of fuel increased for the last time on September 15 of last year. Currently, “A-98” is sold for 1.9 manats, and “A-95” is sold for 1.6 manats. Before that, the price of 1 liter of “A-95” was 1.45 manats, “A-98” gasoline gasoline and it was 1.6 manats.
Is the next price increase realistic and how can the government justify this change?
Head of the Oil Research Center Inspiration Shaban says that the information about the price increase does not refer to any official source. “Usually Azerbaijan in practice, we come across that articles conveying the truth of the price increase to consumers occupy the agenda after the event. At that time, one side said that the price increase was inevitable, while those who disagreed said that the “dependence of the oil country on the foreign market” was not convincing. Let’s say today-tomorrow price 10–20 the penny increased. That is, it is possible. Because that’s what usually happens,” the expert notes.
The expert believes that, in fact, the party raising the price (the government) at that price gasoline It is more desirable for the parties to understand each other instead of creating dissatisfaction among the area (population):
“In order for this situation to happen, a number of issues related to the oil products market should be shed light on and their universal acceptance and understanding should be ensured. Thus:
AI-95 and AI-98 brand gasolines Azerbaijan price in the domestic market 10 how much the price of crude oil must change for the penny to increase or decrease;
As the price of crude oil fluctuates Azerbaijan stock exchange of imported gasoline prices the relationship between should be disclosed;
Azerbaijan imports the main part of high-octane gasoline from Russia, in which the wholesale of Ai-95 gasoline due to sanctions in this country prices showed a decrease instead of an increase. In January 2022, the average price of 1 ton of EU-95 on the St. Petersburg stock exchange was 55,000 rubles, but in June it decreased to 40,700 rubles;
The price of EU-95 and EU-98 gasoline was last changed on September 15, 2021. At that time, the price of Brent oil was 75 dollars was traded around. Exactly 3 months later, oil was sold at a price of about 4%. By early 2022, Brent had risen to $94. Ukraine oil after the start of the war 100 and was trading at $130 on March 8. That is, if we proceed from the market rules, the prices of imported gasoline in Azerbaijan should have changed at the end of January. Because even wholesale prices in Russia have reached their maximum. In the following two months, crude oil prices reached year highs. But the price of gasoline imported to the country did not change.”
Inspiration Shaban reminds that on June 8-9, Brent oil showed a significant increase compared to May, reaching 123-125 per barrel. dollars reached its limit. But at the end of the month, it was trading at 108-109 dollars: “Brent, which started the auctions at 111 dollars in the first days of July, is now sold around 107 dollars. On the 6th-7th of the month, it fell to the level of 98-99 dollars, because new forecasts were given that the growth rates of the world economy will decrease significantly.