According to the Georgian Competition and Consumer Agency's interim report on auto fuel market monitoring for 2023, 54 undertakings imported 1,541,612 thousand litres of gasoline and diesel into the nation. The three largest importing undertakings account for 54% of all imports, with five importers for 67%. The dominating undertaking is not determined by the volume of market imports. Furthermore, one of the components necessary for group dominance in the form of market shares is lacking.
The largest volume of fuel was imported from the Russian Federation - 62.5%, followed by Romania - 15.3% and Bulgaria - 9.4%. According to the Agency's assessment, the market's import level is moderately concentrated.
In 2023, 378 companies were running a total of 1194 gas stations in the retail market. The Herfindahl Hirschman index, which measures market concentration, was at 1107 units, indicating a low-concentration market. At the retail level, the three largest companies held a combined market share of 50.8%, while the top five companies held a share of 66.2%.
In the fuel retail market, the first half of 2023 was characterized by a trend of price reduction, while the second half was characterized by a price increase - similarly in the main European countries supplying fuel to Georgia (Romania, Bulgaria). In particular, in the first half of the year, the price of regular brand fuel decreased by 50-70 tetri per litre, in the case of premium fuel by 50-60 tetri, and in the case of diesel fuel, the price decreased by 75-90 tetri until the month of August. In the second half of 2023 - the highest price was recorded in October in Georgia, and in September in Romania and Bulgaria. After the maximum mark, the price in Georgia decreased on average by 15 tetri per litre, and in Romania and Bulgaria by 30 tetri.
In the second half of 2023, there was an increase in the difference between the retail prices of large companies and small chains, as retail prices continued to rise. For example, before November 2023, the difference between large companies and small chains for regular fuel was 10-20 tetri, and to 30-35 tetri from November 2023.
The price surplus in large enterprises increased during October to December 2023, compared to the previous period. This could be due to gasoline stocks and/or reduced imports of low-cost fuel from the Russian Federation. However, it is important to note that some large corporations only use European fuel, therefore there is a possibility of receiving a higher fee.
Retail prices have also decreased in January 2024. According to the Georgian Competition and Consumer Agency, the market processes involving retail price changes were mostly consistent with the processes occurring in the local markets of the main fuel-supplying countries (Romania, Bulgaria) during the same period.
