Azerbaijan's government hasannounced a sharp increase in the state-regulated price ceiling for gasoline.
The Tariff Council in Baku-- the state board that sets the maximum prices that firms can charge forcertain commodities and services -- announced the decision at 10 p.m. onDecember 2.
With the rule going intoeffect at midnight, drivers across Azerbaijan effectively awoke on December 3to gasoline price hikes ranging from 27 to 33 percent.
The council also increasedthe price of natural gas for industrial facilities, raising it from 42 manats($53.50) per 1,000 cubic meters to 80 manats ($102).
No explanation was given bythe Azerbaijani authorities.
But economist RovshanAgayev, the deputy head of the Baku-based nongovernmental organization PublicUnion to Assist Economic Initiatives, says he thinks the decision may berelated to an expected fall in state revenues due to decreasing oil production.
"Oil production isfalling. The government's revenues from the oil sector will drop by 2 billionmanats [about $2.43 billion] in 2014 compared to what it was this year,"he said. "Apparently, the government wants to compensate for this lostrevenue by raising prices."
The new price of gasolinenow varies between 0.7 manats ($0.89) and 0.8 manats ($1.02) per liter,depending on the type of fuel. The previous price had been 0.55 to 0.60 manats.
A liter of diesel fuel isnow 0.60 manats ($0.76), up from 0.45 manats.
Adil Amirov, a city busdriver in Baku, says that because of the system used by transit authorities tocollect money from drivers each day, the gasoline price hike may force him toquit his job.
"If they don't decreasethe amount of money we have to pay back [to the transit authority] at the endof the day, it won't be worth working anymore. Because of this price hike, wehave to pay an extra 15 manats out of our daily earnings. [Before this pricehike], we were only left with about 25 manats [about $30] per day," hesays.
"I won't work for just10 manats [$12] a day. Today, I am quitting unless they decrease the amount ofmoney we must return. When gasoline prices go up, the cost of everythingincreases."
Some lawmakers in Baku arealso objecting to the decision, saying the move will result in higher pricesfor many other goods and services.
Economist Agayev says heagrees that other price increases are likely.
"According to ouranalysis of next year's draft budget, the government plans to raise communaland fuel prices twice. That means prices for water, electricity, and naturalgas also will rise," he says. "The government may achieve this accordingto a certain schedule -- not immediately."
The Tariff Council lastannounced a gasoline price increase in January 2007, raising the price ceilingby 50 percent.
That decision was announcedbefore the end of the business day, resulting in a panic rush and long lines atgasoline stations as drivers tried to top off their fuel tanks.
(RFE/RL)
ANN.Az
