New natural gas tariffs set in Azerbaijan

Natural gas tariffs have changed in Azerbaijan for residential subscribers, electricity generation, industrial, and agricultural sectors, Report informs, citing the Tariff (Price) Council of Azerbaijan.

"The current average domestic tariff for natural gas in Azerbaijan is below cost. This has created the need for new tariff regulation to prevent economic losses, ensure profitability, and increase investments in this sector.

As part of the state's social policy and to promote the efficient use of energy resources, the tariff for 1 cubic meter of natural gas supplied to centralized boiler houses of apartment buildings for heating purposes remains unchanged," the council said.

For residential consumers:

- For annual consumption up to 1,200 cubic meters: increased by 0.5 gapik (4.2%) from 12 to 12.5 gapiks;

- For consumption between 1,200-2,500 cubic meters: increased by 2 gapiks (10%) from 20 to 22 gapiks;

- For consumption above 2,500 cubic meters: increased by 5 gapiks (20%) from 25 to 30 gapiks.

The average tariff per cubic meter of natural gas for residential users increased by 1.3 gapiks (8.7%).

Expected monthly cost increases for subscribers:

- 48% of subscribers: 32 gapiks

- 39% of subscribers: 1 manat 43 gapiks

- 13% of subscribers (high consumers): 7 manat 46 gapiks

- For electricity generation, the natural gas tariff increased by 2 gapiks (12.1%) from 16.5 to 18.5 gapiks per cubic meter. For the industrial and agricultural sectors, the tariff increased by 2 gapiks (9%) from 22 to 24 gapiks per cubic meter.

The current exchange rate is approximately 1 Azerbaijani Manat (AZN) = 0.59 US Dollars (USD)