Fuel prices hit record high in Georgia
Fuel prices in Georgia on the rise
The fuel prices in Georgia have skyrocketed as the cost of some types of fuel is already approaching four lari (approximately $1.25).
International fuel prices have been on the rise in recent months, although price increases have become more evident since the outbreak of the Russo-Ukrainian war.
Starting from February 24, when the war began in Ukraine and until the present day, the cost of Premium brand fuel in Georgia has increased by 64 tetri, and by 60 tetri for regular fuel. The price of diesel fuel rose the most – Eurodiesel increased in price by 85 tetri.
The head of the Union of Oil Importers, Vano Mtvralashvili, told Business Media Georgia (BMG) that the sharp rise in prices was caused by two factors: the rise in world global prices and the devaluation of the national currency.
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“The international price of gasoline has risen by 20% and diesel by 42%. At the same time, since the beginning of the war, the lari exchange rate has depreciated by an average of 20-25 points, which is an additional factor. Expectations are rather pessimistic. We are in a situation where no forecasts or assessments can be made”, Mtvralashvili said.
Oil importers say they find it hard to do the math today.
Zaal Yakobidze, head of Senta Petroleum, told BMG that the current situation creates additional risks for the private sector. According to him, there is a danger that Russian companies supplying fuel to the Georgian market will offer the market relatively low prices, with which it will be difficult for Georgian oil companies to compete.
