Halving the excise tax on fuel would not have a significant impact on gasoline and diesel prices, Deputy Finance Minister Giorgi Kakauridze said in the Parliament. He was responding to MP Giorgi Sharashidze, who asked whether a temporary excise cut or deferral could ease pressure from globally higher oil prices.
Kakauridze said even a 50% reduction in the oil excise tax would lower fuel prices by only around 25 tetri, an effect that could be offset by international oil price movements within a single day. He said neither excise cuts nor other measures could significantly influence prices driven by global markets.
According to Kakauridze, the key factor is the uncertainty surrounding oil prices in the region and globally. He said prices should gradually stabilize as this uncertainty eases, rather than through changes to domestic excise policy.
Fuel prices in Georgia have continued to rise, with regular gasoline exceeding GEL 4 per liter at some stations. According to Geostat, fuel price increases contributed 2.2 percentage points to annual inflation in September, when overall inflation stood at 5.6%. Gasoline prices were up by 30% year-on-year and diesel prices by 54%.
