Fluctuation in external market affecting gasoline cost
By Aynur Jafarova
Azerbaijan is currently importing AI-95 Premium gasoline from abroad. So, any fluctuations in the external market is affecting the cost of the product in the country, a source in the oil and gas market told Trend Agency on October 1.
The price of AI-95 Premium gasoline decreased from 0.97 manats to 0.95 manats on October 1. Earlier, it stood at 0.93 manats.
Azerbaijan's state energy company SOCAR said recently it doesn't intend to resume production of AI-95 gasoline at Baku Oil Refinery named after Heydar Aliyev.
"Currently, some overhaul works are underway in the gasoline producing facilities. However even after the overhaul operation, the company will not resume production of AI-95 gasoline," SOCAR noted.
Based on the decision of Azerbaijan's Cabinet of Ministers in March 2014, the imported AI-95 and higher brand gasoline that meet the environmental standards of Euro-5 are not included in the list of the goods regulated by the state.
The rate of excise duty on motor gasoline with less than a 95 octane rating is set at $1 per ton of fuel while the excise duty on imported gasoline with an octane rating higher than 95 and less than 98 is set at $100 per ton.
The rate of excise duty on the imports of motor gasoline with a 98 octane rating or higher will be $150 per ton.
The delivery of gasoline at low prices and its free sale creates appropriate conditions for fully meeting the growing gasoline needs in the country and provides the market with fuel conforming to the highest environmental norms.
The AI-95 and AI-98 gasoline brands account for approximately 10 percent of total consumption in Azerbaijan and these brands are not used practically in the sectors of production and rendering services.