Vakhtang Iobashvili, Chairman of the Union of Oil Importers, assessed the current situation on Georgia’s fuel market and the prospects for price reductions in an interview with BMG. According to him, the government is interested in adjusting prices, while all importing companies are currently reviewing their internal pricing formulas.
Iobashvili explained that the final fuel price is determined by a strict formula, which includes the international Platts quotation, logistics and transportation, taxes, storage and retail costs, and the company’s profit margin. Since purchase and logistics costs are fixed and cannot be changed by importers, the only real resource for price reduction lies within the profit margins of the companies.
He added that it is still too early to name specific figures, as global oil market volatility makes forecasting difficult. Iobashvili also noted that Georgia’s fuel supply comes from several directions, with Russia still holding around 50% of the market, while Azerbaijan remains the main supplier of diesel, covering over 40% of that segment. Azerbaijan, however, cannot supply Georgia with Euro-5 standard gasoline.
After reviewing food and medicine prices, the government price commission has also met with fuel sector representatives. Although public statements did not explicitly address high fuel prices, commission members still believe there is room for discussion regarding possible price reductions.
