Head of Union of Oil Product Importers declares that fuel price will increase in the country for the near future.
Vano Mtvralashvili cannot specify exact period for fuel price increase, but explains the factors of price increase. He also notes that fuel price is not increased in the retail chain yet.
“We head rather bad expectation due to the several factors:
At the current stage, price of one-barrel oil totals to over USD 90, which is the record high figure since October 2014. Oil price has increased by USD 100 on the international market since the beginning of the year, which is an increase of 13-15%. Since mid-December, the price of fuel in the world is rising, but fuel price in the retail chain in Georgia has decreased. However, due to lower demand for fuel in January, as it is a holiday month, prices are not changed and have been stable.
At the current stage, active imports are already starting, new batches are entering and the relatively cheap product is being replaced by more expensive fuel. So, companies will be forced to raise prices.
Moreover, GEL exchange rate against USD is not stable, it is even strengthening, it also contributed to the stability of fuel prices in January, and in the future if fuel prices are adjusted, it will not be as much as it could have been. Consequently, GEL plays a positive role in terms of fuel prices.
When the prices can be adjusted – we cannot say in a week or 10 days for sure, but the fuel will become more expensive in the near future," - said the head of the Union of Petroleum Importers.
