BAKU, Azerbaijan, March 17
Tamilla Mammadova – Trend:
Fuel prices in Georgia are growing every week, said Zaal Iakobidze, head of Senta Petroleum Georgia, Trend reports via Georgian media.
As reported, the reason is a price increase on the international market and the USD exchange rate. If gasoline price has been around $450 per tone early this year, now its costs $650 per tone. The growth totals $200 (43 percent).
In addition, diesel price is $120 up (27.8 percent).
Georgian importers say that the only leverage that can reduce fuel prices is excise tax decline on the oil products. The excise tax on 1 ton of gasoline has increased from 250 lari ($75.52) to 500 lari ($151.04), while on diesel from 150 lari ($45.31) to 400 lari ($120.83) since 2017. Excise tax increases fuel price by 20 tetri (6.04 cents) per liter.
"Gasoline and diesel fuel have increased in price by 60-65 tetri (18-19 cents) in 3-4 months. Unfortunately, this trend continues and prices are going up. We are not able to oppose the price increase. The only solution is to reduce the excise tax, but it has its downside effects, as budget revenues will be reduced and that is a problem for the country," said Iakobidze.
As he noted, the excise tax is 500 lari per ton of gasoline. The diffidence is about 17-20 tetri (5-6 cents).
"If the rate of the excise tax is reduced by 250 lari, it will reduce the fuel price by 20 tetri," said Iakobidze.
According to him, oil prices will be adjusted again in the retail chain, because the recent price rise on the international market is not yet reflected in Georgia.
“Fuel price is still expected to increase by 5-7 tetri in a few days," said Iakobidze.
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