Georgia seeks to boost gasoline supply from Azerbaijan amidst high fuel prices
Ulviyya Shahin
Read moreGeorgia is looking to increase its gasoline supply from Azerbaijan, as stated by Vakhtang Lobashvili, Chairman of the Union of Oil Products Importers of Georgia. This move is anticipated to be driven by the recent modernization of oil plants in Azerbaijan, which is expected to enhance the capacity and efficiency of oil production in the neighboring country.
The current fuel prices in Georgia reflect a significant financial burden on consumers. The average price of EU-95 gasoline stands at 3.16 lari (2.15 manats) per liter, while EU-98 gasoline is priced at 3.62 lari (2.30 manats) per liter. Diesel fuel is priced at 3.32 lari (2.11 manats) per liter, and LPG gas is available at 1.53 lari (0.97 manats) per liter. These figures indicate a notable expense for Georgian consumers and businesses reliant on fuel.
The price pressures on fuel in Georgia can be attributed to various factors, including international oil market fluctuations, supply chain constraints, and local taxation policies. By increasing the supply of gasoline from Azerbaijan, Georgia aims to stabilize and potentially reduce fuel prices, which could alleviate some of the financial pressure on consumers and businesses.
The modernization of Azerbaijan's oil plants is a strategic move to enhance the country’s oil production capabilities. This modernization includes upgrading refining technologies, expanding production capacity, and improving the overall efficiency of oil processing facilities. The expected increase in supply from Azerbaijan could play a crucial role in addressing the supply-demand imbalance in the Georgian market.
In the broader context, Georgia's reliance on imports for its fuel needs underscores the importance of diversifying supply sources to ensure energy security and price stability. Strengthening ties with Azerbaijan, a key regional energy player, could offer Georgia a more stable and potentially cost-effective fuel supply, contributing to long-term economic benefits.
The anticipated increase in gasoline supply from Azerbaijan could serve as a significant step toward easing fuel price pressures in Georgia, benefiting both consumers and businesses. As the situation develops, monitoring the impact of these changes on fuel prices and overall economic conditions in Georgia will be essential for understanding the broader implications of this strategic move.
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