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Review of Georgian oil sector in 2020

Oil&Gas Materials 30 December 2020 13:13 (UTC +04:00)

BAKU, Azerbaijan, Dec.30

By Tamilla Mammadova – Trend:

The year 2020 was characterized by significant challenges for the oil business sector, Trend reports referring to the statement of the Union of Importers of Petroleum Products Georgia.

As the Union notes, COVID-19 is the main challenge for Georgia.

"Various restrictions imposed by the Georgian government, including regulations on the movement of vehicles, have caused less fuel consumption and reduced fuel sales," the union said.

The second major challenge was the depreciation of the Georgian national currency against foreign currencies.

"The oil prices hit a record low due to the pandemic. But, the recent reassuring information has led to another new wave of rising oil prices," said the message.

“In particular, today the price of oil on the London Inter Continental Exchange Futures Europe is $50.86/ barrel, against the background of all this we have been changing the price of fuel, which unfortunately is characterized by recent price increases. Despite COVID-19 and its constraints, which has led to a reduction in fuel consumption, fuel imports have still increased in the first 11 months of this year, due to increased diesel imports,” the statement reads.

In addition, the COVID-19 pandemic also had a negative impact on the consumption of other petroleum products and, consequently, on their imports. In particular:

This year, imports of petroleum bitumen from January through November amounted to 119,600 tons, which is 44,000 tons or 26.9 percent less than the same period of the last year (163,600 tons).

Imports of lubricants in the first 11 months of 2020 amounted to 17,120 tons, which is 1,220 tons or 6.7 percent less than the same period of the last year (18,340 tons).

Imports of liquefied natural gas (LPG) from January through November this year amounted to 36,700 tons, which is 1,100 tons or 3.1 percent more than the same period of the last year (35,600 tons).

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