The Union of Oil Product Importers notes, that the petroleum industry like many other sectors had significant challenges in 2021.
According to the report, pandemic, GEL exchange rate and unregistered fuel problem were the main problems for the sector.
“2021 was much better than the last year due to the gradual lifting of various restrictions imposed in the country. Significant economic growth was observed in the country and it let to increase in oil imports and consumption.
The second significant challenge was the depreciation of the Georgian national currency against foreign currencies during the year, although at the end of the year, it strengthened and stabilized.
One of the problematic issues is the existence of unregistered diesel fuel, which is related to the significant price difference between Georgia and Azerbaijan. In particular, diesel fuel is transported through the tanks of trucks into Georgia from the Republic of Azerbaijan. However, relevant state agencies are actively trying to solve this problem.
Fuel quality can also be considered as a significant challenge. This applies to both gasoline (A-91 octane) and diesel fuel. It is necessary to carry out permanent control of fuel quality by the relevant state structures on both imported and retail products, which, unfortunately, does not happen, "said the Union of Oil Importers.
The main challenge for the oil sector throughout the year was also the rising oil price. Namely, since the beginning of the year (as of December 27), the price of oil on the London Inter Continental Exchange Futures Europe increased by $ 27.51 / barrel or 53.8% and amounted to USD 78.60 / barrel.
As of the Union, in January-November 2021, 1,042.3 thousand tons of gasoline and diesel fuel were imported to Georgia, which is 37.5 thousand tons or 3.7% compared to the same period last year (1004.8 thousand tons). The figure is still up by 49.7 thousand tons or 5% compared to pre-pandemic levels (992.6 thousand tons).
“Due to the pandemic, the aviation oil segment suffered the most last year, but this year the rate changed in a positive direction. In particular, in January-November 2021, imports of aviation oil amounted to 85.8 thousand tons, which is 34.6 thousand tons or 67.6% more than in the same period last year (51.2 thousand tons), but still 6.4 thousand tons or 6.9% less compared to the pre-pandemic levels (92.2 thousand tons)”, - the Union of Oil Product Importers notes.
The Union of Petroleum Importers explains that the pandemic had a negative impact on the consumption of other types of petroleum products. According to the Union, in January-November 2021, the imports of petroleum bitumen amounted to 107 thousand tons, which is 12.6 thousand tons or 10.5% less than the same period last year (119.6 thousand tons).
Imports of lubricants amounted to 17.12 thousand tons in January-November 2021, which is virtually the same as in 2020 (17.12 thousand tons).
Imports of liquefied gases (LPG) also decreased in the same period of the current year, amounting to 34.6 thousand tons. This figure is reduced by 7.3 thousand tons or 17.4% compared to the same period last year (41.9 thousand tons). 92.2% (31.9 thousand tons) of imports were made from the Russian Federation in 11 months.
Despite the economic problems in the country, new gas stations were developed by both branded and non-branded companies throughout the year and more than 1,300 gas stations were operating in Georgia in 2021," the review reads.
