The devaluation of the national currency, a sharp decline in world oil prices and a fine of GEL 55 million imposed on the companies for cartel agreements by the Competition Agency – these factors largely determined the situation on the fuel market in Georgia.
According to the Georgian Union of Oil Products Importers, as a whole 2015 has been a positive year characterized by a lot of positive aspects.
In particular, investments were carried out resulting in updated infrastructure. Construction of new modern petrol stations that meet the European standard is underway. In addition, a number of companies are actively engaged in building and developing the auto-gas stations.
This year the companies actively promoted various types of service.
Oil import and consumption hit a record amount compared with other years. Therefore, the budgetary contributions reached high mark and the oil sector is still the largest tax payers in the state budget.
At the same time, non-branded sector began to develop. Namely, if the number of branded service stations is about 530 units, the number of non-branded reaches 460. More than 20 oil importing companies are operating in the sector. Sales and the geographical area of the non-branded petrol stations have also increased.
The fall in global oil prices has been one of the most important events recently which caused a decrease in the price of fuel on the local network. Since August the price of fuel has decreased an average of 40 terti per liter. It should also be noted that due to the recent sharp depreciation of the lari, which directly affects the cost of the fuel, the fuel failed to fall in line with a sharp drop in crude oil prices. Fuel price decline will continue next year as well.
Since 2016 it is planned to improve fuel quality as well as the state and public control. In particular, the country is moving to the Euro 5 standard. As for diesel fuel, it will be of the highest quality that will help to protect the environment, as well as to establish and develop a competitive environment in the market.
The heads of major oil companies operating in Georgia positively assess the year of 2015.
In particular, SOCAR Georgia Petroleum claims that in 2015 the company has built 8 new filling stations and 6 gas stations. The company also won the tender for the construction of a multipurpose complex in one of the sections of the East-West highway, and the preparatory work is currently underway.
In 2015, SOCAR has invested GE5 165 531 L in the development of its network in Georgia, the company has contributed GEL 109 240 678 to the state budget while sponsored expenses amounted to GEL 118 051.92 and charity expenses – GEL 2 432.80 .
Gulf is also satisfied with the previous year – in particular, the company built a new gas station and opened seven stores of Gulf Store chain.
The past year has been active in terms of charity – in particular after the flood on June 13 the company has assisted 100 vulnerable families. “Gulf” was the first company to sign a memorandum of cooperation with the Solidarity Fund.
In the words of the Deputy General Director of Lukoil Georgia Shavleg Mishveladze, the company’s main achievement in the past year was the high quality of fuel.
“The issue of quality of fuel is becoming increasingly important in Georgia, which is why we believe that the fuel of the highest quality selling in our network is our company’s most important achievement. As for sales, they remained at the previous year’s level that can be considered an achievement amid the lari devaluation,” he says.