Azerbaijan Adjusts Fuel Prices, Sets Utility Fees for 2026

Azerbaijan's Tariff Council has made public changes to gasoline prices and will start charging fixed monthly fees for electricity and gas. These changes begin January 1, 2026, and are meant to improve public transport and keep utility networks in good shape.

Gasoline and diesel will cost more. The price of AI-92 gasoline will go up from 1.10 AZN to 1.15 AZN per liter. Diesel will increase from 1.00 AZN to 1.10 AZN. The road tax will be 7 qepik per liter.

The money from this tax will go to the Public Transport fund created in 2025. Government officials say this fund will help deal with transport problems caused by the increase of people living in cities and nearby areas. The goal is to make public transportation better, more reliable, and easier to access.

Besides fuel changes, the Tariff Council will start a fixed tariff system for electricity and gas. In 2026, people will need to pay a monthly fee no matter how much they use. For homes and small businesses with single-phase electricity or normal gas connections, the fee will be 1 AZN per month. Big industrial companies using three-phase electricity will pay 3 AZN each month.

The Council says that payment is a common practice in other countries. It helps with the costs of keeping infrastructure up and running and providing services. It spreads the costs of maintaining the electricity and gas systems among all users.

This decision has caused some discussion. Some people say that charging for services even if they aren't used is like another tax. Finance experts had warned that gasoline prices would likely increase because of the plan to triple road tax revenues in the budget.

Azerbaijan is moving to a new system for gas supply in 2026. The Tariff Council will eventually pass the authority to set prices to a regulatory group by 2028. These changes are the start of a reorganization of the utility and energy industries.