Azernews.Az

By Aynur Jafarova

Azerbaijan's state energy company SOCAR does not intend to resume production of AI-95 gasoline at Baku Oil Refinery named after Heydar Aliyev, the company reported.

"Currently, 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.

The report also said, since AI-98 gasoline was not produced in Azerbaijan recently, its price was not regulated by the state. The decision on free market conditions for gasoline imports with 95 and 98 octane ratings allows traders to ensure delivery of quality products and meet the needs of consumers in a healthy competition environment.

It is not accidental that after the adoption of the decision, prices of AI-98 gasoline decreased in the country.

SOCAR focused its efforts on the implementation of construction of a new oil and gas processing and petrochemical production complex in the country.

"After commissioning of the new complex in Azerbaijan, production will be ensured and the needs to high-octane fuel which meets Euro-5 ecological standard will be satisfied," the company said.

The retail price for every liter of AI-98 gasoline is currently 1.03 manat and AI-95 0.8 manat.

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 not more 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, but not more 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 Tariff Council said the gasoline delivery at low prices and its free sale creates 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 practically not used in the sectors of production and rendering services.

SOCAR sets up new units at refinery

The company also noted it has launched a catalytic reforming and a gradual coking unit at the Heydar Aliyev refinery after repair operation.

Currently, work continues at the refinery on overhaul of the catalytic cracking, which produces high-octane gasoline.

The work on modernization of the unit will allow it to increase its processing capacity up to one million tons and gasoline production by 450,000 tons.

Ongoing work on the modernization and reconstruction of large plants at the refinery is necessary to increase the quantitative and qualitative indicators of gasoline.

Azerbaijan's energy giant SOCAR, which is keen on expanding operations in the retail oil products market abroad is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan.