Fuel price hit a record high in Georgia. Cost of regular type gasoline ranges GEL 3.71-3.77 in the retail chain, while price for premium type fuel exceeds GEL 3.85, and super type fuel - GEL 3.99. Price rise is entirely due to the current situation on the global market, as the price of a barrel oil has already reached USD 113, and the price of one ton of refined gasoline (Platts) exceeds USD 1,000 for the last few weeks. In addition, depreciation of the GEL exchange rate makes imports even more expensive.
In Georgia, per ton of fuel is charged with an excise tax of GEL 500, which means 38 tetri per liter. In addition, per liter of fuel is charged with 18% VAT, which means VAT of 66 tetri in the case of regular type of petrol. Only the sum of these two taxes is GEL 1.04 and without it, the price for regular type of fuel will be GEL 2.67 instead of current GEL 3.71.
The budget performance report shows that in 2021 the government received a revenue of GEL 543 million from excise tax on gasoline and diesel, as well as other petroleum products. Revenues from VAT on fuel amounted to about GEL 640 million. As a result, consumers and businesses paid GEL 1,160,000,000 in fuel excise and VAT to the government last year. This was 10% of the budget’s tax revenue.
