Despite a recent decline in global oil prices, there are currently no preconditions for a decrease in fuel prices in Georgia, according to Zaal Iakobidze, Director of Senta Petroleum.
His statement follows the Competition Agency’s interim report on fuel market monitoring, which revealed that fuel prices in Georgia have increased by more than 15 tetri since June.
According to the agency, from January to September this year, fluctuations in local fuel prices were in line with global market trends.
The report also highlights that the geography of fuel imports has changed significantly in recent months. Imports from Russia have sharply decreased after the country imposed export restrictions on gasoline and diesel, forcing Georgian importers to source fuel from alternative markets.
“There has indeed been a decrease in international oil prices, especially over the past week. However, since the import of gasoline from Russia is prohibited, Georgia had to switch to other suppliers,” said Zaal Iakobidze.
“Although global prices are falling, purchasing fuel from new markets such as Romania, Bulgaria, and Greece is more expensive than importing from Russia used to be. Therefore, we do not expect fuel prices to decrease locally.”
Iakobidze added that fuel imports from Turkmenistan have also nearly stopped, further limiting options for cheaper supplies.
“Imports from these listed countries are made at much higher prices than from the Russian market. Accordingly, there are no expectations that there will be any change in terms of price reduction,” he concluded.
