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Azerbaijan makes public reason for removal of AI-95 gasoline from sale

05 April 2014 12:50 (UTC +04:00)

Azpetrol LLC told APA-Economics that the sale of AI-95 gasoline will be completely suspended in the country after gasoline stored in reserve tanks ends.

Petrol stations have already started the sale of Premium Euro-95 gasoline. The cost of imported Premium Euro-95 gasoline is AZN 0.93. Another imported gasoline brand is AI-98. The cost of AI-98 gasoline brand has been recently reduced from AZN 1.50 to AZN 1.03.

Premium Euro-95 and AI-98 gasoline brands are imported by various entrepreneurs and their prices are regulated by Azerbaijan's Tariff Council.

SOCAR told APA-Economics that Azerbaijan would continue the production of AI-92 gasoline and suspend the production of AI-95 gasoline: “Premium Euro-95 gasoline will be imported from abroad. The demand for gasoline is increasing year by year. Refineries can not meet the demand for gasoline production. The capacities of oil refineries in Azerbaijan no longer cope with the growing volume of gasoline consumption in the country. Thus, Azerbaijan suspended the production of AI-95 gasoline.”

The company also added that the State Committee on Standardization, Metrology and Patents had already started to develop standards for ensuring future operation of new petrochemical and oil-gas processing complex.

“About 1 000 standards will be adopted in this regard. A technical committee will be also establihed. It will be supposedly possible to produce AI-95 and AI-98 gasoline at petrochemical and oil-gas processing complex and export them in 2023-2025. SOCAR is also working on bringing the produced fuel to the Euro-4 emissions standards,” said the company.

Earlier by a decision of the Cabinet of Ministers, the imports of gasoline with 95 and 92 octane rating was exempted from customs duty. Duty rate was reduced from 15 percent to zero, and the excise duty rate on imports of these gasoline brands was reduced from $250 to $1 per ton.

The decision will be valid till June 1, 2014.

The price of oil products in Azerbaijan are fixed and determined by the Tariff Council. The retail price of gasoline increased in Azerbaijan in line with the council's decision, dated December 3, 2013.

The retail price for a liter of AI-95 gasoline is set at AZN 0.80, and the retail price of AI-92 and AI-80 gasoline - at AZN 0.70 per liter.

Prior to this, the cost of one liter of AI-95 gasoline was AZN 0.60, AI-92 and AI-80 – AZN 0.55. The last time fuel prices changed in Azerbaijan was in 2007.

The oil products are produced at two Baku oil refineries. These oil refineries produce 16 million tons of oil each year.