BAKU, Azerbaijan, June 9
By Tamilla Mammadova – Trend:
Before the lari began strengthening it had been planned to increase fuel prices in Georgia amid the rise in international oil prices, said Chairman of the Union of Oil Products Importers Vano Mtvralashvili, Trend reports via Georgian media.
"So the fact that the prices stopped hiking can be considered a positive effect of the lari’s strengthening," said Mtvralashvili.
According to Mtvralashvili, at this stage fuel prices can decrease by at most 0.05 lari (1.59 cents) at small non-branded filling stations, while prices at large ones will change only after purchasing a new batch of fuel at new prices at the lari’s new rate.
"The decline in fuel prices in Georgia is hindered by the rise in oil prices that hit a 2-year high neutralizing the positive effect of the lari’s strengthening. At this stage, the fact that new price hikes have been suspended can be considered positive," Mtvralashvili notes.
He adds that oil companies have stocks of fuel purchased at higher prices that also hinders a decline in fuel prices.
"Prices will really start declining if the current exchange rate keeps until the companies start new purchases of fuel," Mtvralashvili notes.
---
Follow the author on Twitter: @Mila6197935