A possible reduction in fuel excise taxes would have little impact on international freight transport costs and tariffs, says Irakli Nemtsadze, head of the Land Transporters Association.
Speaking to Business Morning, Nemtsadze explained that Georgian trucks must refuel in other countries during international journeys. For example, Turkey imposes limits on the amount of fuel trucks can bring across its border, forcing Georgian carriers to purchase more than half of their fuel there.
Even a GEL 0.40-per-liter excise reduction would lower the cost of a truck journey on the Istanbul–Tbilisi route by only around GEL 400. Spread across a 20–24-tonne shipment, the savings per unit of goods would be negligible, he said.
Rising fuel prices have also increased parking and vehicle maintenance costs, as well as employee salaries. However, Nemtsadze identified the shortage of qualified personnel as the industry's biggest challenge, saying companies cannot expand their fleets because they lack enough drivers and other staff.
