OMM Newsroom
Butter and cooking oil prices are rising in Azerbaijan.
"Operativ Məlumat Mərkəzi-OMM", citing Khazar TV, reports that shoppers say prices for some products have increased by 50 qepik to 6 manats.
The increases are particularly noticeable for butter. Some consumers say they are opting for smaller packages to save money.
Baku residents say they are now having to pay considerably more for butter they used to buy at lower prices.
“Butter that I used to buy for 18 manats 80 qepik now costs 23 manats 90 qepik. Cooking oil prices are rising too. Butter that used to cost 22-23 manats is now 27 manats, while products that cost 25 manats are now selling for 30 manats,” one resident said.
Other shoppers said they were choosing smaller, 200-gram packages to cut daily expenses.
Retailers also confirm price increases
Shopkeepers say prices have risen for both locally sold and imported oils. They say that over the past 10 days, some cooking oils have gone up by 30-50 qepik, while butter prices have increased by 1 manat to 1 manat 20 qepik.
Stores in the regions are also reporting similar trends. Retailers say price increases range from 50 qepik to 3 manats, depending on the product and package size. Some five-kilogram oil products have seen even larger increases.
Economist explains reasons behind price rises
Economist Kamran Hajiyev said prices are affected not only by conditions in the local market but also by changes in international supply chains and higher raw material costs.
He said raw material costs, production volumes, weather conditions, transport and logistics expenses, exchange rates, and the costs incurred by importers and retail chains all play an important role in determining oil prices.
Hajiyev said rising prices and shipping costs on international markets could also push up cooking oil prices in Azerbaijan. However, he said current indicators do not provide sufficient grounds to conclude that a sharp increase in butter prices is inevitable.
Butter production declines
Azerbaijan produced 18,045 tonnes of butter in January-September this year, down 9.5% from the same period last year. Imports of butter into the country reportedly rose by 21% over the same period.
Against the backdrop of lower production and changes in imports, prices in the coming months will depend on international prices, supply costs and domestic market availability.
