The FINANCIAL -- Gasoline prices have risen by 5 tetri in Georgia as of November 12, 2007. This process is causing discontent among customers. All leading petrol importers have increased their prices.
According to Lukoil Company, the company was offering oil products at the following price ranges two months ago: Super - GEL Per litre 1, 75, Premium - GEL Per litre 1, 60, Euro Regular - GEL Per litre 1, 50, and Euro Diesel - GEL Per litre 1. 65.
From November 12, the company has been offering the same products for the following prices: Super - GEL Per litre 1, 80, Premium - GEL Per litre 1, 65, Euro Regular - GEL Per litre 1, 50, and Euro Diesel - GEL Per litre 1. 65. Euro Regular and Euro Diesel have managed to avoid these price increases.
According to Wissol Petroleum Georgia, the company offered the following product range at the following prices two months ago:
Euro Products: Super Manpower - GEL Per litre (VAT included) 1.80, Premium Power - GEL Per litre (VAT included) 1.65, and Euro Regular - GEL Per litre (VAT included) 1.50. Econom Pack: Diesel Standard - GEL Per litre (VAT included) 1.35.
From November 12, Wissol Petroleum Georgia has been offering the same products at the following prices: Super Manpower - GEL Per litre (VAT included) 1.82, Premium Power - GEL Per litre (VAT included) 1.70, Euro Regular - GEL Per litre (VAT included) 1.60, and Euro Diesel - GEL Per litre (VAT included) 1, 70. Econom Pack: Diesel Standard - GEL Per litre (VAT included) 1. 60.
According to Levan Gogichadze, the Marketing manager of Lukoil, the price rise was not the concrete decision of any one company.
“This tendency was caused by global market changes and its reflection on each importer company. The process mostly touches lower price range petrol users, rather than the higher price user segment. Supposedly the price rise will not hit the sales index, if the prices do not rise again in the upcoming three weeks,” Gogichadze declared.
“Usually gasoline prices drop in the winter, after the summer driving season. But this current situation is not dependent on that trend. There exist several reasons for the price rises, and they are all due to the world market which regulates prices globally. It is not a case of speculation by the Georgian petrol importer companies,” Gogichadze added.
In 2006, a barrel cost USD 66-70, but on November 15, 2007 the price has grown noticeably and has reached USD 94, 08 a barrel.
“The process of price rising is not desirable for oil and petrol importer companies, but the companies distribute the products according to European standards. The price of gasoline is susceptible to several factors: wars, political official’s declarations, natural cabalisms and economical development tendencies. So it is very difficult to comment on whether the price will go higher again or not,” Gogichadze said.