Baku, August 19, 2025 — Azerbaijan will introduce a fixed monthly tariff for gas consumers starting July 1, 2028, under amendments to the Law on Gas Supply signed by President Ilham Aliyev.
According to the law, gas sector tariffs will be regulated by the designated authority and published on its official website. These tariffs will cover wholesale gas prices, transportation, storage, distribution, retail sales, and connection fees to both the transport and distribution networks.
The newly introduced fixed tariff will take the form of a monthly payment applied to every consumer. It is designed to cover constant costs that do not depend on actual gas consumption — a measure authorities say will strengthen financial sustainability in the sector and create a more predictable tariff structure.
Potential Impact on Households
While the reform aims to modernize regulation and ensure transparency, its social impact could be uneven. For wealthier households with higher consumption, the fixed tariff may represent only a minor addition to their energy bills.
However, for low-income families and pensioners, who typically consume less gas but are still required to pay the same fixed monthly fee, the reform could increase the relative burden of energy costs. This raises concerns about affordability, particularly during the winter heating season.
Mitigation Measures Likely Needed
Experts suggest the government may need to introduce targeted subsidies or social support programs to prevent vulnerable groups from being disproportionately affected. Without such mechanisms, the reform could widen the energy affordability gap between income groups.
Energy analysts also note that the measure might encourage greater energy efficiency in the long term, since the variable portion of bills will still depend on actual gas usage. But unless accompanied by social safeguards, the fixed tariff could spark public debate over fairness in the energy system.
