By a decision of the Cabinet of Ministers, customs duties will be set separately for a number of goods, including automotive gasoline. The document, signed by Prime Minister Ali Asadov, envisages changes to the “Nomenclature of Goods for Foreign Economic Activity, Import and Export Customs Duty Rates.” According to the decision, a separate duty approach will be applied to these products, rather than a unified one.
Regarding the issue, economist Vugar Oruj told Demokrat.az that the decision adopted by the Cabinet of Ministers aims to set the duty separately for other types of fuel, different from gasoline:
"Although it is not possible to accurately predict in which direction this duty will change at this moment, probabilities indicate that it may be directed towards an increase. Both budget savings and optimization of expenses can be taken into account here, which can ultimately affect prices."
He stated that the decision creates an opportunity for the government to regulate gasoline policy separately and independently:
"This approach can be positively assessed. At the same time, the socio-economic situation of the population will be taken into account at every step, and the duty increase will be implemented in stages. The fact that a fixed 15 percent duty is not applied indicates that the duty will be variable. In this case, international market prices and domestic expenses can be taken as a basis. The percentage of the duty can be set at 13, 15, or 20 percent depending on the periods."
The expert said that the long-term solution to all these issues lies in expanding Azerbaijan's oil refining capabilities:
"The country must become a state that not only exports crude oil but also processes it and creates added value. Because the increase in alternative energy sources and the uncertainties regarding the future fate of oil prices make steps in this direction necessary," he said.