PM calls on fuel importers to adjust prices “as soon as possible”

Prime Minister Irakli Garibashvili has called on fuel importer companies to adjust their prices “as soon as possible” at the weekly Government meeting on Monday. 

Garibashvili pointed to the price of oil on the world market being below $95, and the “strong” exchange rate of the Georgian lari against the US dollar, in noting there was an “expectation” that fuel prices would decrease on the local market “very soon”.

Garibashvili highlighted the “shock” on the international market caused by the outbreak of the war in Ukraine, with the resulting sharp rise in oil prices in importer countries, including Georgia, the Government Administration said.

The PM said the fuel prices on the world market had been reduced since the initial rise, along with a strengthening of the national currency exchange rate. The Government’s “coordinated interventions” in the foreign exchange market had led to a “stabilised” situation, Garibashvili added.

In comments on the anticipated changes in fuel price, the Prime Minister noted “the sooner this process starts, the better.” 

Garibashvili also pointed to the entrance of “several dozen oil importers” into the Georgian market after the ruling party came to power in 2012, crediting the “free competition” and the Government’s decision not to “interfere too much” in regulating prices with the outcome.

Different companies have started to import “relatively cheap” fuel to the local market, the PM added, while drawing a parallel to the Government initiative on importing affordable medicines from Turkey to effect a reduction of prices on the local market. Garibashvili said importers of oil and fuel should be enabled to “give our citizens more choice."

"All this indicates that we are pursuing the right policy, but on the other hand, we will closely monitor the actions of all importers [and] their behaviour," the head of the Government added.