News - Armenia Saves Billions with Azerbaijani Fuel Supplies

Supply chains from Azerbaijan to Armenia have stabilized, claimed Armenia's Economy Minister Gevorg Papoyan. The country is receiving gasoline, both Premium and Regular grades, at an increased volume of 6-7 thousand tons, compared to earlier amounts of 1.2-1.3 thousand tons. This shift will potentially reduce gasoline and diesel fuel prices by an average of around 80 drams in December. Importers from other countries have initiated wholesale price reductions as well. This economic strategy, following peace with Azerbaijan, is projected to save the Armenian economy about 16.4 billion drams ($43 million) annually, naturally benefiting both the state and household budgets. This substantial cost reduction benefits sectors like agriculture, expected to save approximately 1.1 billion drams on diesel during spring farming activities. While some concerns address Armenia's potential dependency on Azerbaijani oil products, Minister Papoyan sees no such risks, as Armenia diversifies imports from Romania, Georgia, Russia, and Egypt. Diversifying import sources contributes to price drops and bolsters economic competitiveness. Armenian authorities aim to overcome trade barriers like closed borders to ensure cheaper imports and exports. Previously, it was reported that by January 8, 2026, 8,485 tons of Russian grain and in-transit fuel from Azerbaijan, including 7,600 tons of gasoline and diesel oil, had been settled via railway through Azerbaijan.