Business representatives in Georgia warn that if global oil prices remain high, the cost of goods and services is likely to rise. Private sector companies have already hinted at potential price increases, even as the parliamentary commission continues to monitor prices.
According to Lasha Rizhamadze, Chairman of the Georgian Distributors Business Association (GDBA), higher oil prices will affect consumers in approximately 1–1.5 months. “Fuel price increases are accompanied by higher international transportation costs, especially amid disruptions in cargo flow. Domestic logistics costs also rise, which companies need for product distribution,” he explained.
Rizhamadze added that, for now, companies have absorbed some of the higher costs without fully passing them to consumers. “If the trend continues and becomes sustained, the increased costs will inevitably reflect in final product prices. The main drivers are: higher prices from international suppliers, rising global transport costs, and increased domestic logistics expenses. Unless the market stabilizes, we can expect gradual price hikes in 1–1.5 months.”
Oil prices continue to climb globally. In the past month, crude oil prices rose 42% to $94 per barrel, with Brent crude reaching nearly $108 per barrel - a 50% increase for the month. U.S. diesel prices also hit historic highs, exceeding $5 per gallon. In Georgia, fuel prices continue to rise, with gasoline increasing 5–20 tetri and diesel 15–32 tetri over the past week.
