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Elnur Enveroglu
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Although some experts note that the improvement of fuel types
plays a minor role in reducing the risk of global warming and
issues with our vulnerable environment, the countries of the world
support this as a global initiative. Studies show that a large part
of environmental pollution is caused by toxic gases released from
cars as a result of using fuels that do not meet modern
standards.
For example, many leading European countries have stopped
selling and producing diesel fuel for more than ten years.
Moreover, the world's car manufacturers, including the Chinese
ones, have started exporting cars that meet the new Euro-5
standards.
In addition, the main goal of those countries regarding air
pollution is to accelerate the transition to electric cars.
Meanwhile, Azerbaijan, which will host the COP29 event in November
of this year, is already taking its first steps. Charging stations
for electric cars have already been established in Azerbaijan in
the last few years, and this indicates that decisive measures have
been taken for the import of new generation - 0-emission cars.
However, today in Azerbaijan, especially cars running on AI-92
octane gasoline are still the majority. Experts say that these
types of fuels are of low quality and emit more toxic gases into
the air as a result of combustion in car engines. Even in most
countries, AI-92 gasoline is no longer produced or sold. Moreover,
taking into account the greater environmental damage of diesel,
measures are being taken to reduce its consumption. For this
purpose, in many countries, the price of diesel is regulated so
that it is more expensive than the price of gasoline.
Yesterday, the new decision of the tariff council in Azerbaijan
on fuel prices showed that it is a fundamental step taken to
support the solution to the climate problem in the world. Although
Azerbaijan is naturally an oil and gas country, it is extremely
sensitive to environmental pollution, global warming, and similar
problems. For this reason, starting the production of AI-95
(Premium) octane gasoline that meets the Euro-5 standards in the
country and the relative reduction of prices in connection with
this are commendable steps.
On the other hand, the slight increase in the prices of AI-92
(rising from 1 manat to 1.10 manats) and diesel (from 0.80 manat to
1 manat) fuel indicates what will happen in the next decade. For
example, experts note that the production and registration of new
cars with gasoline or diesel engines (with the exception of cars
running on carbon-neutral synthetic fuel (e-fuel)) in the European
Union will not be possible from 2035. Considering that AI-92 brand
gasoline is not used in most countries, it means that countries
that already produce cars will have to make a transition to Euro-5
standard engines at once.
Large manufacturers at the global level have already switched to
the production of "premium" branded cars with electric and hybrid
engines. The reason is very clear; in order to reduce the negative
impact of transport emissions on the environment, there is a need
to increase the quality of fuel. From this point of view, "Euro-5"
is considered more efficient and climate-friendly with its
capability to meet the standards. In Azerbaijan, taking into
account environmental requirements, the production of fuel in
accordance with the "Euro-5" ecological standard has already been
started. The use of Euro-5" standard fuel reduces car exhaust gas
smoke and emissions to the environment, reduces the possibility of
corrosion in the engine, and reduces fuel consumption. As mentioned
earlier regarding the decision of the tariff council, the price
difference between gasoline and diesel was reduced in order to
switch to more gasoline consumption, taking into account the
greater environmental damage of using diesel fuel.
It is also important to take into account the fact that
statistics show that although the import of gasoline-powered cars
to Azerbaijan has decreased, the number of diesel-powered cars has
increased significantly recently. The main reason for this was that
the price of fuel was lower than gasoline. But it's no secret that
along with the repair costs of diesel engines, their damage to the
environment is higher. In all countries, especially European
countries, as well as in Azerbaijan, taking into account that
diesel engine cars pollute the air more, reducing their use is
being encouraged.
Of course, the price change will accelerate the transition to
fuel-efficient hybrid, electric and CNG (compressed natural gas)
powered vehicles.
How will the new fuel price affect the prices of other
products?
At present, various questions arising in society regarding the
latest decision of the tariff council have started to make everyone
think. The first question that comes to mind is "If fuel prices
rise, will other products become subsequently expensive?"
Of course, the decisions made by the tariff council regarding
transport, transportation, and fuel do not always affect the price
of a product. If the prices are increased on the one hand, on the
other hand, it is regulated in a certain way. In addition, it is
better to understand fuel prices not economically, but rather as a
step towards a new and clean environmental cycle.
As for the impact of the latest decision of the Tariff Council
on the prices of other products in the country, taking into account
the possibility that fuel price increases due to psychological
pressure will initially push prices up, strict control measures
will be implemented to prevent abuse of tariff regulation and
unjustified price increases.
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