How will the price increase of EU-95 brand gasoline affect our economy? - The expert EXPLAINED
The increase in the price of gasoline caused dissatisfaction among the population
As we reported, the price of EU-95 gasoline in Azerbaijan increased by 0.4 manats and the new selling price was 2 manats.
Qazet.az reports that the increase in the price of gasoline caused dissatisfaction among the population.
Economist-expert Eldeniz Amirov, explained the reasons for the increase in the price of gasoline to our website, says that the main reason for this is the dependence of EU-95 gasoline on imports:
"Of course, the news of the increase in the price of EU-95 gasoline is not a good news. It is true that we always note that the dependence of EU-95 brand gasoline on imports does not allow the price of EU-92 brand gasoline to be regulated by the Tariff Council. The high level of oil prices in the world, as well as not only oil as a raw material for the production of EU-95 gasoline, but also issues such as technological equipment, their creation and use make the production of this gasoline more expensive. The import of the product whose cost has risen naturally becomes more expensive."
The expert thinks that as an oil country, we could have taken certain steps to produce EU-95 gasoline:
"The average statistics of EU-95 in the countries of the world is about 1.47 dollars. I don't think that the comparative analysis with the countries of the world is very correct. Because we are an oil country, it is necessary for us to be more sensitive to this issue. I think that those who put satellites into orbit, As a country that has created a "smart village" and modernized its army, we could have taken this step in the oil industry 7-8 years ago. That is, we could have built more modern factories and now produce AI-95. Our inability to produce this is our biggest shortcoming in the oil industry.
Attention should have been paid to this matter. At present, work is being done on the production of AI-95 cloth. In the coming years, I think we can also produce the EU-95. But questions such as whether this production will be able to meet the domestic demand, whether the dependence on imports will disappear or not, are still unanswered, we will see with time. I think that the increased 25% price increase could be made to 1.80 manats first, and 2 manats in the next stage. Because in all cases, this issue also has psychological effects."
As for the effect of the increase in the price of EU-95 gasoline on our economy, Eldeniz Amirov notes that it will not have a negative effect on real inflation:
"I don't think that this gasoline, like diesel and AI-92, will have serious negative effects on the real economy and inflation. If AI-92 and diesel rise, it will lead to greater consequences. Because production will become more expensive, employment will be negatively affected, and certain problems will arise. As a result, inflation will intensify. and will have a negative impact on all areas of the chain economy. Therefore, we must definitely protect the price of diesel and EU-92. 95 and 98 brand gasolines account for 9% of the total consumed gasoline. According to statistics, 8.8% are EU-95 brand , and 0.2% is EU-92 gasoline. Therefore, it is imperative that we prevent the rise of other fuels in any form. All possible steps must be taken to do this. Because it can have a devastating effect on our economy.