“Liquid Gas Association” chairman Nika Khoperia says Georgia’s LPG (liquefied gas) market faces major challenges driven by inadequate infrastructure and a heavy tax burden. According to him, Georgia’s excise tax on LPG is one of the highest in the world and contradicts EU recommendations, which call for LPG excise to be four times lower than gasoline. In Georgia, the rate is GEL 325 for LPG and GEL 500 for gasoline, whereas Khoperia argues LPG excise should be GEL 125.
Khoperia believes that correcting the excise tax would reduce fuel prices by an additional 5–8 tetri, making eco-friendly fuel more attractive and benefiting both consumers and the environment. He also notes that the LPG market is competitive, with many players operating due to relatively easy market entry.
However, a key structural problem is the absence of gas storage infrastructure in Georgia. This leaves the country highly dependent on imports and vulnerable to supply disruptions, especially when delays occur at the Larsi checkpoint.
Khoperia warns that even a two-week disruption at Larsi creates an immediate shortage and price spike, emphasizing the need for improved infrastructure and tax incentives to support sustainable growth in the sector.
