Expert: AI-95 price change won't lead to price increase in other sectors

Price increase of AI-95 gasoline in Azerbaijan from 1.6 to 2 manats is a manifestation of the processes occurring in the global energy market, economist-expert Amal Hasanli told Report.

"This brand of gasoline is not produced in Azerbaijan. We import it. During the first 4 months of 2022, the price of one ton of AI-95 gasoline imported to the country is $300 more compared to last year. This is directly related to the increase in oil prices. So, since the beginning of this year, the price of Brent crude oil has increased by 25%. The price of gasoline in the United States reached even $6 per gallon (3,785 liters), hitting historical records. A similar process is observed in Europe as well," he added.

The expert believes that the impact of the AI-95 price increase on the general population will be minimal: "Traditionally, the majority of population in Azerbaijan uses AI-92 gasoline and diesel fuel. Businesspeople primarily use the above-mentioned types of fuel. This is why the market share of AI-95 is very small. In such circumstances, its price increase will not lead to price increases in other sectors. There is no economic ground for this. However, as always, some businessmen may use the situation to their benefit. To prevent this, the relevant control bodies of the state should work actively."

During the first 4 months of this year, 29,981 tons of EU-95 gasoline were purchased from abroad (Russia, Bulgaria, Romania and Turkmenistan), which is 36% less than a year ago. The decrease is due to a 4-fold reduction in the volume of imports from Russia, one of the main supply markets. Last year, Romania was responsible for 44.5% of the 147,412 tons of EU-95 gasoline we bought from abroad (from 8 countries) and Russia accounted for 35.2%."