2022-04-11
The price of oil has dropped to 95 USD in the international market, and the GEL's exchange rate against the USD has grown stronger, the reason why, dear fuel importers, I expect you to take into account the condition of our population and country and to adjust fuel prices soon, Georgian Prime Minister Irakli Garibashvili stated during today's Cabinet meeting.
According to the Head of Government, fuel prices are expected to drop in Georgia very soon-the sooner, the better.
"After a war broke out in Ukraine, the international market was in shock at first, including the oil market, with fuel prices skyrocketing by about 70% to reach 140 USD from 70-80 USD, a serious problem for the market. Since our country depends on import, bring in almost everything from abroad, and we are not an oil-producing country, fuel prices grew here just like elsewhere in the world, including in the US and Europe. Oil prices went up everywhere, including in oil-producing countries. Naturally, Georgia could not be an exception. We remember how, in a couple of weeks after the beginning of the war, the GEL devaluated, and all that impacted prices, of course. But now we see that, since we carried out coordinated interventions in the exchange market, the situation has stabilized dramatically-its exchange rate dropping to 3.05, almost 3.00, against the USD. The situation is stable, and we have it under control. There are no problems, inflows continue, tourism is on the rise, with the numbers of tourists growing every month, and we have very positive economic expectations in general. Over the past few months, we have had double-digit economic growth. Export is growing, and all these parameters sustain our optimism. According to the latest statistics, the price of oil has dropped to 95 USD in the international market, and the GEL's exchange rate against the USD has grown stronger, the reason why, dear fuel importers, I expect you to take into account the condition of our population and country and to adjust fuel prices soon. I am aware of these expectations, that Georgia's fuel prices will drop soon-the sooner, the better. I know that other groups have started importing relatively affordable fuel. We must open up this process, and everyone should be able to import fuel to offer our citizens a wider range of choices," the Prime Minister said.
According to the Head of Government, since Georgian Dream's coming to power, tens of oil importers have emerged in the market.
"I would like to remind our citizens that, under the previous government-and I will not mention any names-there were practically only a few groups monopolizing the market, dictating and dominating all importers. And all these groups were in the hands of former defense minister Kezerashvili and Saakashvili. But let me remind everyone that, since Georgian Dream's coming to power, the situation has changed dramatically, and tens of oil importers have emerged in the market. In the same vein, large groups have been established, because there is free competition in the market, and the state does not interfere crudely, excessively in price regulation. All this is indicative of the correctness of our policy. On the other hand, we will carefully monitor the work of all honest importers. We expect the fuel prices to drop very soon, unless there are some radical changes in the global market that directly impact the situation in Georgia," the Prime Minister said.
Press Service of the Government Administration