Tariff Council: Rise in price of water will not affect the cost of final product

The impact of tariff changes on product's price is virtually invisible

Baku. 23 May. REPORT.AZ/ Increase of tariffs for use of water in Azerbaijan will not significantly affect the retail price of the final product manufacturers, using water as a raw material.

Report was told in the Secretariat of Tariff Council: "The proportion of water in the cost of 1 liter of beverage in the industrial production is minimal, so the impact of tariff changes in the price of a product is almost imperceptible."

"Some media reportedly said that to produce 1 liter of beer requires 5 liters of water, so the increase in water tariffs will significantly affect the price of beer. In this regard, we would like to note that in this case the impact of rate changes on the price of half-liter bottle of beer is measured in 1 kopeck. In price of Coca-cola this difference will be 0.08 kopecks", the information says.

In general, the last tariff change, which considers the value of 1 liter of water for a group of consumers using water as raw materials is 0.8 kopecks (including wastewater services) will stimulate enterprises using water for technical purposes to transfer to reusing water system.

Notably, due to the relevant decision of the Tariff Council dated May 13, tariff for water supply of enterprises that use water as a raw material (including wastewater services), regardless of destination, was set at 8 AZN, including VAT.

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