Georgian Competition
and Consumer
Agency

According to the review, in January-September 2021, the country imported 1,082,971 thousand liters of petrol and diesel by 32 undertakings, which is 3.6% more than the same period in 2020.

According to the agency, Turkmenistan became the top importer for Georgia in 2021, and the most volume of fuel imports, 23.6 percent, came from Turkmenistan in January-September. It is followed by Russia with 19.3 percent and Azerbaijan with 18.1 percent. The interim report shows that 44.6% of total imports are diesel fuel and 55.4% petrol.

From the petrol-type fuels, the regular-type was the most in-demand. At the same time, National Competition Agency states that the period January-September 2021 was marked by an upward trend in crude oil and, consequently, the price of Platz. The Platz price has increased by 62.6% from $ 452 on January 4, 2021, to $ 735 as of June 30 and reached $ 805 on September 30.

“There is real competition in the market, and there is less impact of any non-market factors on the change in prices, but mainly it is caused in line with the global trend. However, we are also looking at importers` markets, such as - Armenia, Ukraine, etc. Even the markets from which mainly fuel enters Georgia - Bulgaria, Romania has changed its top importer and became Turkmenistan. We see absolutely the same dynamics in these markets. Compared to Bulgaria and Romania, Georgia may have a slightly higher growth rate of 3-5 cents in 2021 than, for example, in other periods when this percentage difference was balancing one in one. However, we say that it may be caused due to certain currency risks and not because it is a conditionally incompatible action against any company. "– Said Irakli Lekvinadze at the First Channel of Georgia.

According to the Competition Agency, a study of the fuel market found that the difference between the average retail price of regular type fuel of large companies and the retail price of similar type of fuel for small networks in the period under review is in the range of 12-43 Tetri.

"There are 5 large networks in the market, with a combined share of up to 60 %, the rest are small networks. The number of importers of fuel to Georgia is about 50. Compared to 2012, the number of importers has increased from 8 to 50. In addition, for the same type of fuel, the price range between small and large networks 12 to 40 Tetri has been fixed in 2021. So, citizens could - pour the same type of fuel compared large to small network companies by this difference. That gives us the basis for the assessment to exclude at this stage the artificial increase in prices in the auto fuel market, "- Lekvinadze noted in a conversation with the First Channel of Georgia.

Georgian National Competition Agency will continue to monitor the auto fuel market and publish an in-depth interim report on the competitive environment, including wholesale market analysis, assessments, and recommendations by the end of 2021.