Fuel Prices Go Up in Georgia

Over the last few days, fuel prices have significantly increased in Georgia. The changes refer to the cost of all types of petrol and diesel which, according to petrol importers, is connected to increased prices on the global market.

According to the Georgian Union of Importers of Oil Products, from the beginning of the current year, oil prices have risen on the London InterContinental Exchange Futures Europe oil stock on average by $17.18 per barrel, which is a 29.9% increase in price, which today stands at $74.51 per barrel.

The fuel prices on the world market increased after the United States imposed sanctions on Iranian oil.

Importers do not make any positive predictions, while experts advise the Georgian government to reduce the excise tax, which was increased from GEL 0.25 to 50 per liter in 2017. Specialists claim that if the taxes and tough regulations are removed, the fuel price will be reduced.

Experts also believe that the increased fuel price will bump up the price of other products too.

Vano Mtvralashvili, Chairman of the Union of Importers of Petroleum Products, says that the devaluation of the national currency GEL against of the US Dollar is not the main factor and does not affect the prices of oil products in Georgia.

“At the beginning of the year, the official exchange rate of the GEL against the Dollar was 2,6727 and now one dollar is 2,6981 GEL. It is quite stable at present,” he stressed.

Mtvralashvili also said that during the last two weeks the price of fuel has increased on branded petrol stations on average by 7-10 Tetri per liter.

The Union of Oil Products Importers informs that the average retail price of fuel at the branded petrol stations in Georgia is as follows:

Regular – 2.30-2.39 GEL / liter;

Premium – 2.41-2.49 GEL / liter;

Super – 2.49-2.59 GEL / liter;

Euro diesel – 2.53-2.64 GEL/ liter

By Thea Morrison

Image source: The Independent