Transportation of fuel to Nakhchivan to be subsidized

The Cabinet of Ministers of Azerbaijan has amended the resolution dated February 6, 2014, "On changing the level of existing excise rates for petroleum products," Report informs referring to the Cabinet of Ministers.

According to the information, by the resolution of the Tariff Council dated July 26, 2022, "On the regulation of tariffs for petroleum products within the country," the producer's tariff for petroleum goods produced and sold domestically was reduced from 695.75 manats ($409.27) to 689.78 manats ($405.76). As a result, there was a reduction in the excise tax, which is charged on each ton of fuel at the manufacturer's tariff and paid to the state budget. In order to compensate for this decrease, the excise rate on RON-92 motor gasoline was increased from 42% to 42.5%, and on diesel fuel - from 18% to 18.3%.

Also, from next year, expenses that have exceeded the upper limit of the tariff for the supply of fuel to the Nakhchivan Autonomous Republic from points of sale determined by the State Oil Company of Azerbaijan (SOCAR) will be paid from the funds provided for in the subsidies allocated to the Autonomous Republic from the state budget. This year, 5 million manats ($2.94 million) have been allocated from the State Budget Reserve Fund for these purposes.