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, Trend 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
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