About oil prices in Georgia

The price of oil has, in most parts of the world, been gradually decreasing recently. However Georgian businessmen involved in the oil business are not putting their prices down, on the contrary they are slowly but surely increasing the price on oil products. Independent analysts made some calculations and came to the conclusion that the fuel price in Georgia should be at least GEL 0.15 less than it is now. People involved in this industry either do not comment at all or present some unconvincing arguments. First of all they say that the oil products which are sold at the market were bought at a high price, therefore it is sold at a high price as well. So, only when cheap oil is brought into the country will the prices go down.

This type of explanation does not offer any comfort for Georgians as transportation costs increase for the ordinary population and indirectly this influences and tends to increase prices of commodities countrywide.