The Georgian government, ministries and public institutions buy fuel from major oil companies operating in the country on the basis of a consolidated tender. According to the agreement between the parties, the purchase price is updated every month based on a special formula.
Under the contract, the price is determined at the beginning of the month based on the average price of one ton of gasoline recorded on the PLATTS EUROPEAN MARKET during the month. In February 2022, one ton of PLATTS-branded fuel price totaled to USD 900 on average, while in March it rose to a record USD 1,065.
Meanwhile, national currency depreciated rapidly and fuel price hit a record high in March.
Due to market change, the government will have to buy more expensive fuel from April. New and old prices are divided according to fuel types:
• Regular type of fuel - March - GEL 3.08, April - GEL 3.76, increase of 22%;
• Premium type of fuel - March - GEL 3.09, April - GEL 3.77, increase of 22%;
• Super type of fuel - March - GEL 3.42, April - GEL 4.12, increase of 20.5%.
As for the price of fuel for ordinary consumers, currently, the cost of one liter of the regular type of fuel is GEL 3.75-3.85; Premium type of fuel - GEL 3.95-4.00; supertype of fuel - GEL 4.05-4.12.
Fuel prices are expected to fall in a few weeks as the national currency strengthens in recent weeks. The price of a barrel of oil is reduced to USD 96, while one-ton PLATTS-branded fuel price - USD 995.
