Economist Oto Abesadze on Georgian Lari Depreciation and Increased Fuel Prices

"As a result of extrapolation in the dynamic range over time, fuel will increase by 50 tetri and the Georgian Lari will depreciate by 40 tetri again," economist Oto Abesadze wrote on his Facebook page.

We offer his post unchanged:

"Fuel costs 3.4 GEL at the most unbranded and plain gas station, the US dollar exchange rate is 3.47 GEL. As a result of extrapolation in the dynamic track over time, the fuel will increase in price by 50 tetri and the gel will depreciate again by 40 tetri.

Cancel the excise tax on fuel and run on VAT floating mode (aim at 10%).

• This will stop inflation;
• This will stop the depreciation of the Georgian Lari;
• This will reduce fuel prices by 85 tetri;
• This will enable businesses to find new markets;
• This will at least stop the rise in prices.

All this in the short term (6 months) and during this period work aggressively to get the status of an EU candidate. This status will allow us to create new markets, investments, and financial flows that will automatically stabilize the above problems.

Fasten your belts. With this reform, the budget will lose up to 4 billion GEL and that is good. You will spend less GEL against the background of this insane inflation. Halve the administrative expenses and reduce the expenditure part from the top by 2 billion GEL,” Abesadze wrote.