BAKU, Azerbaijan, January 2. The current domestic average tariff for natural gas in Azerbaijan is running below its cost price, raising the red flag for new tariff regulations to stave off economic losses, boost profitability, and reel in investment to the sector, the Tariff (Price) Council of Azerbaijan said, TurkicWorld reports.
The Council highlighted that, in line with the government's social policy and the goal of promoting the efficient use of energy resources, the tariff for 1 cubic meter of natural gas supplied for heating services to centralized boiler houses in apartment buildings will remain unchanged.
Annual consumption volumes for the population:
- The tariff for 1 cubic meter of natural gas for consumption up to 1200 cubic meters has been increased by 0.5 qepik (0.29 cents) (4.2 percent), from 12 to 12.5 qepik (7.05-7.35 cents);
- The tariff for consumption from 1200 to 2500 cubic meters has been increased by 2 qepik (1.17 cents) (10 percent), from 20 to 22 qepik (11.7-12.9 cents);
- The tariff for consumption over 2500 cubic meters has been increased by 5 qepik (2.94 cents) (20 percent), from 25 to 30 qepik (14.7-17.6 cents).
- The average tariff for 1 cubic meter of natural gas for the population has been increased by 1.3 qepik (0.76 cents) (8.7 percent).
Following the tariff adjustment, the expected increase in the average monthly cost of the service for the population is as follows:
- for 48 percent of subscribers: an increase of 32 qepik (18.8 cents);
- for 39 percent of subscribers: an increase of 1 manat 43 qepik (0.84 cents) ;
- for 13 percent of subscribers (those with higher consumption): an increase of 7 manat 46 qepik ($4.38).
As can be seen, for 48 percent of the population, the tariff for 1 cubic meter of natural gas has been raised by the smallest amount—just 0.5 qepik (0.29 cents) (4.2 percent).
Additionally, the tariff for natural gas used in electricity generation has been increased by 2 qepik (1.17 cents) (12.1 percent), rising from 16.5 to 18.5 qepik (9.70-10.88 cents). The tariff for 1 cubic meter of natural gas for industry and agriculture has also been increased by 2 qepik (9 percent), from 22 to 24 qepik (12.9-14.1 cents).
Comparison of tariffs for natural gas:
|
№ |
Indicator |
Tariff (qepik/m³, including VAT) |
|
|
Previous |
New |
||
|
1. |
Retail sales of natural gas |
||
|
1.1. |
Population |
||
|
1.1.1. |
For annual consumption up to 1200 m³ (inclusive) |
12,0 |
12,5 |
|
1.1.2. |
For annual consumption volume from 1200 to 2500 m³ (inclusive) |
20,0 |
22,0 |
|
1.1.3. |
For annual consumption volume over 2500 m³ |
25,0 |
30,0 |
|
1.2. |
Not the general population |
||
|
1.2.1. |
Provision of central heating and hot water supply in apartment buildings by legal entities and individuals, regardless of their organizational and legal form, as well as Azəristiliktəchizat OJSC |
16,5 |
16,5 |
|
1.2.2. |
Gas filling stations for the sale of compressed natural gas (CNG) |
16,5 |
18,5 |
|
1.2.3. |
Use as a raw material in the production of methanol and urea products |
20,0 |
20,5 |
|
1.2.4. |
Industrial and agricultural sectors |
22,0 |
24,0 |
|
1.2.5. |
Other fields |
25,0 |
28,5 |
|
2. |
For electricity generation sold domestically by direct connection to the main gas pipelines (except for consumers specified in paragraph 5 of this decision) (subject to monthly consumption of at least 10 million m³) |
16,5 |
18,5 |
