BAKU: Azerbaijan has announced a revision of its natural gas tariffs, as the nation seeks to address economic pressures and stimulate sector investment. The Tariff Council has implemented changes that will affect domestic and industrial consumers, aiming to balance costs with the needs of the country's social policies and energy efficiency efforts.
According to Azeri-Press News Agency, the decision was driven by the existing domestic average tariff for natural gas being below the cost price, necessitating regulatory adjustments to prevent economic losses. While tariffs for central heating in multi-apartment buildings remain unchanged, the alterations reflect a broader strategy to ensure profitability and encourage further investment in Azerbaijan's natural gas sector.
The new tariff structure introduces varying increases based on consumption levels. For household consumption up to 1200 cubic meters, the tariff per cubic meter has risen by 0.5 AZN, equating to a 4.2% increase. Consumption between 1200 and 2500 cubic meters sees a 2 AZN increase, a 10% hike, while usage exceeding 2500 cubic meters will experience a 5 AZN increase, representing a 20% rise. Overall, the average tariff for the population has been elevated by 1.3 AZN, an 8.7% increase.
The financial impact on households varies significantly. Approximately 48% of subscribers will see an average monthly expense increase of 32 AZN, whereas 39% will incur an additional 1.43 AZN, and the remaining 13%-those with higher consumption-will face a 7.46 AZN increase.
In the industrial sector, the tariff for natural gas used in electricity production has gone up by 2 AZN, a 12.1% increase, reaching 18.5 AZN. Similarly, tariffs for industrial and agricultural usage have also experienced a 2 AZN rise, a 9% increase, now at 24 AZN per cubic meter.
These adjustments reflect Azerbaijan's ongoing efforts to align its energy policies with economic sustainability and resource efficiency, addressing both domestic needs and the broader demands of its energy markets.