Lari’s devaluation can cause oil products price hikes

Lari’s devaluation can cause oil products price hikes

access_time2019-08-01 14:28:09

International oil prices and the national currency rate are two major factors affecting petroleum product prices.

According to the Union of Oil Products Importers, the international factor can be excluded now given  the stable oil prices remain, there remains only one risk factor such as  the devaluation of the national currency which lasts  for the last few days.

Importers say if the national currency does not strengthen, fuel prices can grow by 5-6 tetri per liter.

“If in two weeks or a month the national currency keeps falling, we’ll buy the new batch at a new rate and sell it at a higher price, ” Zaal Yakobidze, CEO at Senta filling stations network says.

In Yakobidze’s words, an approximate rate  of fuel price growth can’t be  predicted as all depends on the lari devaluation.

According to Vasil Khorava, the General Director of Wissol , they are trying to maintain the price level, but if devaluation continues, then growth is inevitable.


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