Why do neighboring countries have different fuel prices? - Clarification of the Union of Importers of Petroleum Products of Georgia

The Union of Importers of Petroleum Products publishes a comparative review of fuel prices in Georgia's neighboring countries.

The Union of Importers says some of these countries are producing oil, leading to lower fuel prices.

According to the Union of Oil Importers, in Azerbaijan 1 liter of A-92 gasoline costs 0.51 euros, the price of A-95 gasoline is 0.82 euros, and A-98 gasoline costs 0.97 euros; Diesel fuel - EUR 0.41.

In Russia - the price of 1 liter of A-92 gasoline is 0.57 euros, the price of A-95 gasoline is 0.61 euros, A-98 gasoline is 0.71 euros, and diesel fuel is 0.63 euros.

In Georgia - 1 liter of A-92 gasoline costs 0.84 euros, the price of A-95 gasoline - 0.88 euros, A-98 gasoline - 0.91 euros, diesel fuel - 0.84 euros.

In Armenia, the cost of 1 liter of A-92 gasoline is 0.92 euros, A-95 gasoline - 0.97 euros, A-98 gasoline - 1.04 euros, diesel fuel - 0.91 euros.

In Moldova, 1 liter of A-92 gasoline costs 1.04 euros, A-95 gasoline - 1.06 euros, A-98 gasoline - 1.12 euros, diesel fuel - 0.92 euros.

In Ukraine, the price of 1 liter of A-92 gasoline is € 1.02, the price of A-95 gasoline is € 1.06, A-98 gasoline is € 1.13, and diesel fuel is € 1.02.

“Among neighbors, fuel prices are lower compared to us only in Azerbaijan and the Russian Federation, and this is logical, because they are large oil-producing countries.

Consequently, fuel prices in these countries are always low compared to Georgia, but when oil products are exported from these countries, including our country, the product is sold at international prices, according to S&P Global Platts.

However, we should note that the price of ''super'' fuel in Azerbaijan (0.97 euros / liter) is relatively high compared to prices in Georgia (0.91 euros / liter), since this type of gasoline is not produced in Azerbaijan and it imported from European countries.

As for other countries, which, like our country, largely depend on fuel imports, compared to them, all types of fuel in Georgia are much cheaper. Among them, it should be noted that the average price of sold oil products in Georgia is 0.07 euros or 7.7% cheaper per liter compared to Armenia. It should also be noted that the excise tax in Armenia is much lower than in Georgia.

In particular, the excise tax in Armenia per ton of gasoline is 40 thousand drams (about 208 lari), and in Georgia - 500 lari per ton. In the case of diesel fuel, the excise tax in Armenia is 13,000 drams (about 68 lari) per ton, and in Georgia - 400 lari per ton, ”the Union of Oil Importers explained.

Drivers in Georgia have long been protesting against high fuel prices. One of the most acute forms of protest was their refusal to refuel at Wissol gas stations.