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Fuel Prices Went up after Elections

After the second round of elections, fuel price has increased, despite the fact that a decreasing trend is being observed on the international markets in the last two weeks.

According to “Rezonansi” daily, importers actually do not have any excuse to increase fuel price- international prices go down, and the suppliespurchased at a relatively high price have been exhausted, so a new batch of  fuel is bought at  a much lower price.

Recently, the Union of Oil Products Importers forecasted   a price hike on the market due to  the expected increase in price of fuel in theinternational markets, however, it happened any other way and prices began to fall on foreign marketswhile  in Georgia the retail price continued to rise.

As of July 22, oil price reduced in the world’s leading London and New York stock exchanges.

As for the local market, at this stage a liter of Super costs GEL 2.35 in  “SOCAR” network, Premium – GEL 2.26, Euro Regular- GEL 2.18, Euro-diesel – GEL 2.3, while Azeri diesel – 2.12 GEL.

“Rompetrol” offers  almost the same prices – ” Euro Regular”-  GEL 2.14, Premium – GEL 2.24, Super – GEL 2.35, Euro-diesel – GEL 2.17.

Prices in “Gulf” network are as follows: ” Euro Regular”-   GEL 2.15, Premium – GEL 2.23, SUPER – GEL 2.32, Euro-diesel – GEL 2.28, diesel – 2.16.

The analyst Beka Kemularia explains high fuel prices in Georgia by  companies’ willful  decision and says that fuel prices are artificially hiked. In his words,  oil importers should lower the price of fuel by at least 0.05 GEL but  they do not do it intentionally.

He notes that only unbranded companies, which market share does not exceed 10%, can compete with oligopolistic companies.

President of Young Financiers and Businessmen’s Association Nodar Chitchinadze confirms an artificial increase in prices and says that the companies will have the opportunity to  keep high prices for another one year until the Competition Agency begins to operate.

He adds that the price difference between the retail network and national tenders is  at least 0.20-0.25 GEL, which means that the companies are working on high earnings.