“Ultimately, having analysed everything, we concluded that Georgian prices can approach European price levels as closely as possible,” Georgian Prime Minister Irakli Kobakhidze stated on Imedi LIVE.

According to the Head of Government, a thorough analysis was carried out to identify the causes of rising prices.

“We examined the situation, thanks to the efforts of the Minister of Economy and the Ministry of Economy. A detailed investigation was conducted into the factors driving price increases. The conclusion is that the markup is excessively high.

From Georgia’s border to the shop counter, the markup amounts to 86 per cent. We cannot even stop at the shop counter, because this figure excludes both import duty and VAT. Without these, the markup remains a substantial 86 per cent, which is very high. This also does not account for the markup applied before reaching the border. When all factors are combined, the overall markup is quite significant, ultimately driving up the prices of products.

We have also examined the markup in European countries themselves between wholesale and retail prices, which typically ranges from approximately 30 to 40 per cent. Ultimately, after analysing all the relevant factors, we concluded that it is indeed possible for Georgian prices to approach European levels. We believe this is achievable. Further investigation may be required for the remaining details.

We must initiate the process, which will undoubtedly be challenging, but our goal is to see it progress as swiftly as possible. This will require consultations with distribution companies as well as with representatives of supermarket chains. As you may remember, Parliament has already confirmed its willingness to establish a parliamentary commission for this purpose, and law enforcement agencies have also indicated their readiness to develop the necessary procedures within their own structures.

Naturally, all of this must lead to tangible results. We are confident that, based on this process, price reductions are achievable. The same likely applies to the pharmaceutical sector as well, where prices remain excessively high. We believe meaningful change is possible there, too, which is in society’s best interests. The key is to precisely identify where prices are being inflated unnecessarily and where reductions can be made. From there, we can consider measures such as anti-monopoly legislation, its implementation, and other actions that will ultimately better protect the interests of our citizens,” stated Irakli Kobakhidze.