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Tuesday, May 17, 2022

Fuel price in Georgia continues to hike amid Russian-Ukrainian War

In Georgia, the prices of fuel have increased dramatically, with some types of fuel costing as much as four lari (about $1.25).

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In Georgia, the prices of fuel have increased dramatically, with some types of fuel costing as much as four lari (about $1.25).

International fuel costs have been rising in recent months, but the rise in the price of fuel has been more evident since the beginning of the Russian-Ukrainian war.

As of February 24, when the war in Ukraine began, and continuing until now, the price of Premium brand fuel in Georgia has climbed by 64 tetri, while the cost of regular fuel has grown by 60 tetri. The most significant increase in price was for diesel fuel, which jumped by 85 tetri.

Moreover, according to Vano Mtvralashvili, the head of the Union of Oil Importers, the dramatic spike in costs was caused by two factors: rising worldwide prices and the depreciation of the national currency.

“The international price of gasoline has increased by 20%, and the price of diesel has increased by 42%. At the same time, the lari exchange rate has depreciated by an average of 20-25 points since the start of the war, which is an additional factor. Expectations are somewhat gloomy. “We’re in a state where we can’t make any forecasts or assessments,” Mtvralashvili added.

Oil importers say they find it challenging to do the math these days.

According to Zaal Yakobidze, CEO of Senta Petroleum, the current situation exposes the private sector to significant dangers. According to him, Russian enterprises selling fuel to the Georgian market face the risk of offering the market very low pricing, making it impossible for Georgian oil companies to compete.

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