03 December 2013, 16:23
Growth of energy tariffs in Azerbaijan to increase prices in other spheres, experts assert
In Azerbaijan, the increase from December 3 in prices for gasoline and diesel fuel has drawn criticism from the civil society and the opposition. They believe that the growth of fuel prices will trigger an avalanche increase in the cost of other goods and services and lead to deterioration of people's lives. Till present, official comments on the decision of the Tariff Council are not available.
The "Caucasian Knot" has reported that starting from Tuesday, in Azerbaijan, the average cost of fuel has risen by 0.2 manats.
Gubad Ibadoglu, the head of the Centre for Economic Research, believes there are no objective reasons for the increases in price. He explains the growth of energy tariffs by "preservation of monopolies in the economy and decline of oil revenues."
Gubad Ibadoglu believes that the government wants to cover the budget deficit by increasing prices for gasoline, diesel fuel and natural gas for industrial enterprises.
He is convinced that after that increase, the Tariff Council will make the decision to increase the prices for passenger transportation by road, and then, the increase in prices for electricity and natural gas will follow.
Isa Gambar, the leader of the oppositional "Musavat" Party, believes that citizens of the country should categorically stand against the increase in prices.
Earlier, on November 5, Samir Sharifov, Minister of Finance, called "natural" the upcoming rise in tariffs for energy and utilities. According to his version, the tariff increase has been initiated by the Joint-Stock Companies "Azerenergy", "Azersu", "Azerigas" and SOCAR (all their shares are owned by the state).
Author: Faik Medzhid Source: CK correspondent
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