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For the period of January-February the production of petroleum products declined by 8% in Azerbaijan as compared to 1 March of the previous year, Azerbaijani news outlet Haqqin.az reports.

Citing the information provided by the State Statistics Committee of Azerbaijan, the outlet notes that mazut production saw the biggest decline – 99.5% (up to 200 tons), the production of lubricants dropped by 65.8% (2.6 thousand tons), bitumen – by 53,4% (19.7 thousand tons) and kerosene – by 7.9% (106.6 thousand tons). January-February period saw a rise in petrol production for 0.7% (199.4 thousand tons), straight-run gasoline for 36.4% (20.6 thousand tons), and diesel – for 18.3% (480.9 thousand tons).

According to the article, the whole production is carried out in Heydar Aliyev oil refinery. Azerneftyaq refinery merged with this oil refinery since 1 January, 2015.

Haqqin.az also reports that many analysts predict a new decline in oil prices to 40% this week. The experts of the Singaporean United Overseas Bank claim that the drop of the prices of oil is conditioned by the “investors concern that the ‘black gold’ resources in the US are at record levels and go on rising.” According to the data of Goldman Sachs experts, oil extraction will increase for 230 thousand barrels per day in the US in the fourth quarter of 2015.

Apparently, the world is about to face the biggest drop of prices of oil since the 1980’s. It will certainly hit all the oil-producing countries, including Azerbaijan, the article reads. 

In an interview to Haqqin.az ex-president of Azerbaijan Ayaz Mutalibov called on the government of the country to get rid of “oil needle” as soon as possible.

“Yes, at the beginning of the 1990s we had to bet on oil as it first of all presupposed geopolitical aspect as well – to take its place in the international community. But the parallel development of non-oil sector was to take place in the internal politics. That is, we need to give freedom to the citizens engaged in small and medium-sized businesses. For example, 40% of the budget of many European countries is made up of the revenues from the SMBs. Although much was done in that direction in Azerbaijan during the recent years, non-oil sector has not become an important source of budget incomes. Oil dependence is remaining enormous,” Mutalibov noted adding that the monopolies devour small enterprises, preventing the development of the SMBs, which contradicts the philosophy of market economics. You cannot rely on oil. That is why the government must now immediately take up effective measures to save Azerbaijani economy from oil dependence.

There are also reports that the Cabinet of Ministers of Azerbaijan introduced changes into the Register of Natural Monopolies regarding the abbreviation of the biggest natural monopoly in Azerbaijan – State Oil Company of Azerbaijan Republic (ARDNS). According to the changes, the abbreviation ARDNS was replaced with the abbreviation SOCAR, news outlet Oxu.az reports.