Georgian Competition
and Consumer
Agency

Taking into account the impact of COVID-19 and the ongoing processes in the global oil market, the Competition Agency publishes an interim review for 2020. In addition to the general assessment of the competitive environment in the market, the National Competition Agency of Georgia, within the framework of monitoring the automotive fuel market, monitors the retail selling prices of automotive fuel and presents it to the public periodically.

According to the obtained results:
• Since 2013, imports, wholesale and retail sales of petrol and diesel and the number of operating undertakings on the relevant market have increased. The market concentration index has decreased, which is an indicator of the improvement of the competitive environment; in 2012, 8 economic agents were represented at the market import level, the number of which increased to 63 in 2019 and decreased to 45 companies in 2020. Despite this, in 2020, compared to previous years, there was no increase in the market concentration index at the level of relevant market imports.
• The total share of the five major undertakings operating in the retail market in 2020 is 56.5%, while the total share of other companies is in the range of 43.5%. At the beginning of 2015, about 960 petrol stations were operating in the retail market, in 2019 - 1210, and 2020 - 1216.
• In 2020, at the relevant market level, the market concentration index - Herfindahl Hirschman index was 746 units, which is a low concentrated market rate.
• COVID 19 has had a significant impact on the global and local fuel markets, both in terms of sales and pricing.
• The change in the price of the platz in the local retail market was mainly reflected in the relevant time intervals and other factors.
• Small networks reacted much more flexibly to the price reduction of the platz, which was mainly due to the small supply of fuel.
• Large companies compared to small networks based on their large supply of fuel allowed in some cases to keep the existing price despite the increase in the price of the platz.
• The price range and difference for the same brand of fuel was quite differentiated, allowing the customer to make a wide variety of choices.
• The current processes in the Georgian market in terms of retail price changes were in line with the current processes in the local markets of the main fuel suppliers (Romania, Bulgaria, Russia) during the same period.