Importers are in favor of introducing a floating excise tax, but the Ministry of Finance does not yet see such a need.
The Georgian government says it is considering measures to insure against excessive fuel price increases in Georgia.
Fuel prices in Georgia continue to rise due to trends in world markets and fluctuations in oil prices.
"In addition to the excise tax, the state has a mechanism for insuring the growth of fuel prices," Georgian Finance Minister Lasha Khutsishvili said.
But Economy Minister Levan Davitashvili noted that the state will take measures as soon as it sees uncontrolled changes.
"If we see important changes, then after consultations with the business sector we will adequately respond to it, as this is a very sensitive issue," Davitashvili said.
The head of the Union of Importers of Petroleum Products Vano Mtvralashvili suggests that the government may introduce a fuel price limit.
"The Ministry is considering the upper limit of prices. If this happens, the rising prices will have to be compensated either by subsidies or excise taxes," said Mtvralashvili.
He noted that importers are in favor of introducing a floating excise tax, but the Ministry of Finance does not yet see such a need.
"There is practically no multi-stage excise tax system in the world, it is difficult to administer and it gives an opportunity for manipulation,"-Khutsishvili said.

The situation on the fuel market in Georgia

According to the Georgian Competition Agency, 39 economic agents operated on the fuel import market in 2021 and a total of 1.5 billion liters of gasoline and diesel were imported into the country.
Turkmenistan accounts for the main share of fuel imports, followed by Russia, Romania and Bulgaria.
At the same time, the agency notes that the cost of imported gasoline of the most common brand "regular" from Russia and Turkmenistan is lower than the cost of imported gasoline from Romania and Bulgaria. And the difference for 1 liter of this fuel during the year ranged from 0.06 to 0.25 lari.
At the same time, the competition agency notes that 2021 was characterized by the dynamics of price growth on the international platform Platts (recycled fuel). Over the year, the price has increased by 65%.
At the same time, the agency notes that in the retail market, the price depends on the company and for the same type of fuel, the price fluctuated by 0.3-0.45 lari and depended on the importing country.

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