Business
Posted: 6 days ago

Baraka: We Plan to Reduce the Price of Oil

From August 1, Russia increased the export tax on oil and meal by 127 dollars.

Russia is the main supplier of sunflower oil to Georgia, so the price change affects the domestic market of Georgia as well. However, due to the new conjuncture of the international market, "Baraqa" oil producing company "Alfa" assumes that currently, the price of oil will not increase. The reason is a sharp decrease in the price of raw sunflower on the world market, at the expense of which the price of Russian oil will be balanced.

According to the commercial director of the company Alfa, Davit Kirvalidze, due to the decrease in the price of sunflower in the world market, Baraqa's oil may become cheaper in the local market by up to 4%.

As Geostat data suggests, in the time juncture of January-June 2022, the import of sunflower oil has decreased by 2.3 times. More specifically, in the same period last year, the country bought 17,592 tons of sunflower oil, worth 26 million GEL, and this year, 7,385 tons, worth 13.9 million GEL, of sunflower oil were imported into Georgia.