After the increase in gas prices from January 3, 2021, bakeries forecast a 30-35% increase in products' prices. According to them, utility bills are already a big burden for businesses. The commercial sector has been paying high tariffs for both water and electricity for years. Added to this is the rise in natural gas prices, which have risen since January.
The founder of the company "Ghumelidan" says that many businesses can no longer withstand this pressure.
"Products will increase in price by at least 30-35%. This is the price increase that we have calculated. It affects the customer's pocket as well, but before it gets there and gets any significant reflection, it naturally affects the business and business expenses. The most important thing in these processes is that the business has become obligated to serve the increased taxes, as in the case of the water tax, which is 15 times higher than the household tax," said Lana Lagvilava, founder of the bakery "Ghumelidan."
For reference, seven business associations operating in Georgia today issued a statement regarding the increase of gas tariffs. Business associations responded to the decision of Tbilisi Energy, according to which the commercial gas tariff will increase by 0.24 GEL.
According to business associations, such a decision is incomprehensible, especially now, during the severe pandemic and the economic crisis. The letter states that "Tbilisi Energy" "exerts completely unjustified additional pressure on business and increases the already high utility bills."
Business associations are requesting a meeting with the management of Tbilisi Energy to discuss the issue and call on the government to get involved in regulating the process.
