AZE.US
Consumers in Azerbaijan spent 2.327 billion manats ($1.37 billion) on gasoline and diesel fuel through retail outlets in January–July 2026, an increase of 4.19% from the same period last year.
The figures, however, reflect sales in monetary terms and do not necessarily indicate a comparable increase in the volume of fuel consumed, economist Natig Jafarli said in an interview with Baku TV.
Jafarli identified the January 1 increase in the regulated prices of AI-92 gasoline and diesel fuel as one of the main reasons for the higher spending. Even if the number of liters sold changed only slightly, higher higher pump prices would have increased the total value of sales.
Another factor is the continued expansion of Azerbaijan’s vehicle fleet.
“Approximately 60,,000 to 70,000 vehicles are added to Azerbaijan’s roads every year,” Jafarli said, noting that fuel spending tends to rise as the number of cars increases.
Despite growing interest in electric and hybrid vehicles, they still account for a relatively small share of Azerbaijan’s overall vehicle fleet. Gasoline- and diesel-powered cars continue to dominate the market.
Jafarli also pointed to the expiration of some tax and customs incentives for electric and hybrid vehicle imports. He said imports of such vehicles have declined significantly since the beginning of 2026.
Traffic congestion also contributes to higher fuel consumption, particularly during the summer when drivers use air conditioning. Road design can add to the problem by forcing motorists to travel longer distances because of limited exits and inconvenient turnaround points.
The economist, however, said congestion was not the primary driver of the reported increase. The fuel savings provided by electric and hybrid vehicles partly offset the additional consumption caused by traffic jams.
According to Jafarli, higher fuel prices and the growing number of vehicles remain the main factors behind the increase in spending. The official data alone do not show that Azerbaijanis purchased 4.19% more fuel by volume.
AZE.US