Oil Products are Inadequately High in Georgia

access_time2018-02-13 11:42:07

Non-governmental organizations (NGOs) have spoken about the shortcomings of the fuel market of Georgia for many years. The  studies show that the cost of fuel in the country is always higher than it should have been, given international oil prices.


However, despite this, the oil companies are trying to justify themselves and convince society that the prices in the market are fair. In particular, the Union of Oil Products Importers published comparative data on fuel prices in neighboring countries.


As it turned out, petrol in Armenia costs at least GEL 2. 20 per liter, in Ukraine - 2, 63, in Turkey-  GEL 3, 79. As for Russia and Azerbaijan, the cost of oil products is much lower there-  GEL 1, 68 and 1, 30 per liter  as they  the oil producing countries, and naturally  the prices should be much lower there.


In Georgia a liter of petrol  costs at least GEL 2, 3.


The Association of Young Financiers believes  this kind of justification is nothing more than manipulation of  numbers.


 "There are a lot of violations on the market, and it's not a secret for anyone. We constantly hear excuses from oil companies and their lobbyists, including the last comparison, which is nothing more than a manipulation of figures. But even this research shows that fuel prices are too high. They are 14% lower than in Ukraine but a 13.7% inflation is not given, which is almost 100% higher than in Georgia. The comparison with Turkey with  also a very high inflation rate of 12% is also unrealistic, " the Association’s statement reads.


Inflation in Georgia is several times lower and amounts to 6, 7%.


They believe in the Association that currently all the necessary  conditions exist for a decline in fuel prices in Georgia.


"Importers boasted that despite the growth in international oil prices, they manage to contain the rise in price of fuel in Georgia. Amid the strengthened lari  the oil prices  should not have increased, but declined. Today, oil prices are getting lower  all over the world, the national currency continues to gain its value- under conditions of healthy competition, these two factors are sufficient prices in the Georgian market begin to decline. Instead, importers by manipulating figures try to justify high prices, " the Association states.


The experts say that  prices on the Georgian oil market have not been competitive for a long time, and to compare them with Ukraine and Armenia is not an argument since  these countries are not distinguished by special democratic principles and high level of competition.


"Studies and monitoring the fuel market of Georgia clearly demonstrate that prices do not change adequately to changes in the global oil market that gives us reason to assume that they are artificially inflated," the Association believes.

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