Why fuel prices rise in Georgia?
Why fuel prices rise in Georgia?

There are 1.2 million registered automobiles in a country of 3.7 million people. Every other adult in Georgia owns a car. Given all of this, it’s easy to see why even little changes in fuel prices cause such a stir.

Fuel prices in Georgia have risen in the previous four months. At both branded and unbranded gas stations, one liter of standard fuel costs 3 GEL and 15 Tetri. In May, however, it varied between 2 Gel and 10 Tetri.

Importers blame Russia’s decision which has resulted in more expensive European petrol being imported into the country.

In March-May of last year, the price of one liter of petrol increased to 4 GEL. The rationale given was the existing worldwide market condition and the currency depreciation. However, devaluation was reinstated, although it did not appear in the Georgian market.

Because the alleged wrongdoings were so obvious, the government was also interested in investigating the matter.

The competition agency probed into the case, revealing a number of violations.

“Five large selling companies faced fines totalling up to 4 million GEL,” said Irakli Lekvinadze, Chairman of the Competition Agency.

Despite the breaches, the big players refused to pay the fine and brought the matter to court.

“Those who are not lazy curse entrepreneurs who create jobs. You can’t curse those who create the state budget unchecked,” said Vakhtang Iobashvili, Chairman of the Union of Oil Products Importers.

While final conclusions are awaited, citizens believe fuel prices are being artificially surged.

Many experts believe that the competition agency’s work alone is ineffective and that more drastic measures should be taken. It concerns not only the executive power but also the legislative body, which has an important lever to take effective steps.