Monday, 09 January 2006

AZERBAIJAN RAISES DIESEL, HEATING OIL PRICES

Published in News Digest

By empty (1/9/2006 issue of the CACI Analyst)

Azerbaijan\'s State Oil Company announced on 6 January increases of 100 percent or more, effective immediately, in the retail prices of diesel fuel, kerosene, and domestic heating oil. Diesel will now cost not 18 gyapiks but 36 gyapiks per liter (100 gyapiks = 1 redenominated manat = $0.9186).
Azerbaijan\'s State Oil Company announced on 6 January increases of 100 percent or more, effective immediately, in the retail prices of diesel fuel, kerosene, and domestic heating oil. Diesel will now cost not 18 gyapiks but 36 gyapiks per liter (100 gyapiks = 1 redenominated manat = $0.9186). The rationale cited for the price increase was to bring domestic prices in Azerbaijan closer to world market levels and to deter the illegal export of gasoline. Economic Development Minister Geidar Babaev told journalists on 7 January that the price hikes will impact on the rate of inflation, but the effect will not be \"serious.\" On 7 January, some owners of minibus taxis that shuttle between the Baku city outskirts and outlying villages spontaneously decided to double their fares, and announced a protest strike after passengers refused to pay the increased rate. The municipal transport department intervened to defuse the situation. (day.az)
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