Fuel price in Georgia is growing every week, the reason is a price increase on the international market and USD exchange rate. If gasoline price has been around $ 450 per tone early this year, now its costs $ 650 per tone. The growth totals 200 USD (43%).
In addition, diesel price is $ 120 up (27.8%).
Georgian importers say that the only leverage that can reduce fuel prices is excise tax decline on the oil products. The excise tax on 1 ton of gasoline has increased from 250 GEL to 500 GEL, while on diesel from 150 GEL to 400 GEL since 2017. Excise tax increases fuel price by 20 tetri per liter.
"Gasoline and diesel fuel have increased in price by 60-65 tetri in 3-4 months. Unfortunately, this trend continues and prices are going up. We are not able to oppose the price increase. The only solution is to reduce the excise tax, but it has its downside effect, as budget revenues will be reduced and that is a problem for the country.
Today, the excise tax is 500 GEL per ton of gasoline. The diffidence is about 17-20 tetri. If the rate of the excise tax is reduced by 250 GEL, it will reduce the fuel price by 20 tetri," said Zaal Iakobidze, head of Senta Petroleum Georgia.
According to him, oil prices will be adjusted again in the retail chain, because the recent price rise on the international market is not yet reflected in Georgia.
“Fuel price is still expected to increase by 5-7 tetri in a few days," said Zaal Iakobidze.
