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SOCAR Determines Auto Gas Price on the Georgian Market

Georgia-based auto gas networks speak about  SOCAR’s  monopoly on the Georgian  autogas market.

Prior to this, only  small filling stations  talked about theabovementioned, but now the Wissol Group representatives say  that they are unable to determine the auto gas price in the country, the reason is the lack of suppliers in the  market.

Soso Pkhakadze, President of the largest oil importer  Wissol Group,  says that because of  lack of  choice of providers in the market, Wissol cannot determine the cost of gas.

According to Autogas company,  the gas price rise in the last period was not only due to fluctuations in  US dollar rate  but depended  on the purchase price set by the gas importing company SOCAR for the companies. But the company still saysthat the price of automobile gas will drop  in the near future, only if GEL strengthens  for at least 2-3 months.

At this stage the company sells one cubic meter of gas for GEL  1.15. The cost of gas rose by GEL 0.05 in mid-December of last year.

A small gas company Gama also explains auto gas price hike by the prices determined  by SOCAR.

The company’s CEO David Chakhtauri says in a conversation with  “Commersant” that 1 cubic meter of gas in their company costs   GEL 1.15. In his words,  the price was increased about two months ago by  all gas companies  as a result of  a price increase by SOCAR.

SOCAR speaks of  two main factors in  the formation of the selling price of gas.

“The first cause is  fluctuations in GEL rate in relation to the exchange rate of foreign currencies. The second  is additional investments in gas stations required for a safe functioning of the stations.

 The company purchased necessarily equipment  through bank loans, financial servicing of  which is  strictly regulated and requires each station to return the made in  a specified period, otherwise the company suffers  penalties “, – Irakli Zubitashvili,  the head of the Corporate Business Communication Department at SOCAR Energy Georgia, told “Commersant”.

“As of today, the lowest price on the market is offered at SOCAR Georgia Petroleum gas stations that amounts to  GEL 1.13,” – explains Zubitashvili.