Baku Exempts from Duty Russian Fuel Oil

According to a decision of the Azerbaijan cabinet of ministers (No 146 of April 6, 2016), fuel oil (mazut) imported from Russia that is used for power generation in plants operated by state Azerenerji is to be exempt from duty from May 6 until the end of the year.

Azerenerji started using fuel oil to generate power last August. According to government statistics, it has used over 340,000 metric tons. At that time fuel oil cost $200/mt but in March it averaged $162.1/mt.

Socar's oil refineries cannot supply power companies with fuel oil without reducing output of light oil products and Azerenerji is running up debts for gas of hundreds of millions of dollars, so it was decided to import fuel oil.

Azerbaijan desk