The price of fuel in the Georgian retail network is determined by two main factors – the international price of petroleum products according to Platt's and the exchange rate of lari to the dollar.

Demand for automobile fuel in Georgia has increased – from January to November 2020, imports of petroleum products increased by 1.2% compared to the same period last year and amounted to 1,004.8 thousand tons, the Union of importers of petroleum products of Georgia (SING) said. At the same time, prices for petroleum products have increased – in recent months, gasoline and diesel fuel have risen by an average of 10 tetri.

The Chairman of the Union of importers of petroleum products of Georgia (SING) spoke about the reasons for the growth of imports of petroleum products, where they are imported from, as well as fuel prices in Georgia and its possible increase in the near future) Vano Mtvralashvili.

Where and how they are imported

Fuel is imported to Georgia from Russia 30.7%, Azerbaijan 19.3%, Romania 19.1%, Bulgaria 10.2%, Turkmenistan 9.3%, Greece, Kazakhstan, Turkey and Moldova – oil products are delivered to the country by rail and by sea. Russia traditionally remains the largest supplier of petroleum products. According to SING, in January-November, 308.4 thousand tons of oil products were imported from Russia, which is 30.7% of all imports.

Why have prices increased?

The head of SING said that over the past months, prices for petroleum products (gasoline and diesel fuel) have increased by an average of 10 tetri.

Mtvralashvili noted that the price of fuel in the retail chain is generally determined by two main factors – the international price of petroleum products according to Platt's and the exchange rate of lari to the dollar, since petroleum products are purchased in dollars, and in Georgia the product is sold in the national currency.

"The reason is directly related to the growth of international prices for petroleum products, and the fall in the exchange rate of the national currency – the lari to the dollar. These two components are directly related to the formation of prices in the Georgian market. Due to the fact that prices have increased and the lari is depreciating, fuel prices have increased by 10 tetri on average, " Mtvralashvili said.

When is the price increase expected?

According to the head of SING, an average increase in gasoline and diesel prices by 3-5 tetri is expected in the near future, which is primarily due to the continued increase in international fuel prices.

"In the coming days, Georgia will be imported at a new price, much higher than it is today. Naturally, prices will rise. We think that in the next period prices on average will rise by 3-5 tetri," said Mtvralashvili.

Today, there are 5 large companies operating in Georgia, which own about 600 gas stations across the country. There are also dozens of small and medium-sized companies, so-called unbranded, which also have about 600 gas stations in total.

Today, the average price in the networks of branded gas stations is: premium-2.28-2.39 lari per liter, regular-2.10-2.19 lari per liter, Euro diesel-2.27-2.39 lari per liter. Current exchange rate: 1 dollar – 3.3 lari.

Sputnik-georgia.ru