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Competition Agency Studying Georgian Fuel Market

Representatives of oil companies respond to the allegations that they overestimate prices and do not reduce them despite a drop in oil price in the global markets for  nearly  six months.

In addition, Prime Minister of Georgia Irakli Garibashvili ordered the Competition Authority to examine this issue.
Deputy General Director of Lukoil – Georgia Shavlegi Mishveladze states that  the company is ready to cooperate with the Agency in the study of pricing mechanisms.

“We fully support this initiative. In the end, it is time to end the eternal gossip that we are working on the excess profits and artificially increase prices, etc. Talks that oil companies operate on a profit of  GEL 0.87 are not serious. No oil company would be able to work on such a profit. If the Competition Agency  requires any information, we are always ready to provide it. Although we need to get a request in advance, because the answers will take a certain time, “- said the businessman.

According to him, in December the company twice lowered the price of fuel – gasoline by GEL 0.08 and diesel – by GEL 1.15 per liter.

In the words of General Director of Wissol Vasily  Khorava, the company consistently reduces the prices of petroleum products and intends to continue this process, if oil prices don’t start increasing  again.

“When they say that we reduce prices inadequately, they  must understand that a decline in oil prices is not immediately reflected in the retail trade of fuel and takes some time. Prices change  after  imports are  carried out at new prices. We have reduced prices several times and will continue this process in line with global trends. In general, since August, we have reduced prices by 0.30-0.35 per liter, “- he notes.

The Head of the Competition Agency Giorgi Baramidze believes that  the study of the petroleum products market is one of the most pressing issues from the start  of the department which  is currently studying the situation in the period from  2008 to 2014.

“At this stage, information from the Revenue Service, Sakstat, neighboring countries, and more than 100 economic agents is requested. The obtained information is being studied. This is a very time-consuming work. In the coming days, the society will receive information on our activities. As for the final data, in the interests of research, it is too early to talk about the results, “- he adds.