SCPEC reveals reasons of petrol price increase: acquisition prices have grown
Price increase has been documented since January 27 in the petrol retail market, namely the Regular petrol type price has increased by 10 drams from 330, and some time later, on February 20, the price increased by an additional 20 drams. As result, the price of Regular type fuel increased by 30 drams – comprising 360 drams. The state commission for the protection of economic competition (SCPEC) conducted studies to determine the reasons.
SCPEC President’s advisor Gayane Sahakyan said the commission inquired from the State Revenue Committee and two dominant business operators of the sphere – Flash LLC and CPS Oil Corporation LLC, as well as Max Petrol CJSC. The commission has simultaneously studied the dynamics of international petrol prices. As result, the committee found out the abovementioned companies are mainly acquiring the petrol from Rosneft and Lukoil. Researching the supply prices of petrol from these companies, it was determined that from September, 2016 until January, 2017 the prices of 1 ton petrol supply decreased up to 118 USD – 57230 AMD, as result the retail price of 1 liter regular type petrol decreased from 380 drams to 330 drams. According to data, since January of 2017, the price of acquisition for 1 ton of petrol increased up to 136 dollars – 65960 drams as compared to December of 2016 – almost equaling the acquisition prices of September of the previous year.
As result of increase in the acquisition prices, domestic retail prices increased up to 30 drams – comprising 360 drams per 1 liter. The commission also studied petrol export prices as reported by Bloomberg, which said 1 ton petrol export price from Bulgaria and Romania has increased by 74 dollars in February of 2017 as compared to September of 2016. The SCPEC also studied the dynamics of petrol prices in the neighboring countries, and, for instance in Georgia, the price of 1 liter petrol in the country’s Lukoil gas stations comprised 1.3 lari in September 2016, and in 2017 February – 1,72 lari – meaning the price increased by 32%.
