According to the Union of Oil Product Importers, imports of diesel fuel in Georgia for the first nine months of this year amounted to 419.4 thousand tons, 43.4 thousand tons, or 11.5% more than the same period last year (376.0 thousand tons).
The largest volume of imports came from Azerbaijan - 159.3 thousand tons, 38% of total imports. Azerbaijan is followed by Russia - 99.5 thousand tons (23.7%), Romania - 56 thousand tons (13.3%), Turkmenistan - 55.9 thousand tons (13.3%), etc.
The business association explains that it is possible to adjust the above import statistics by countries starting from next year. It is known that from January 1, 2021, the government decree will enter into force, according to which the quality and ecological characteristics of diesel fuel will be tightened, and it will be equal to the fuel of the Euro 5 standard.
At this stage, Georgia imports both Euro 4 and Euro 5 standard diesel fuel. In particular, diesel fuel compliant with Euro 4 standard is imported from the Republic of Azerbaijan.
According to the business union, if a new standard for diesel fuel is introduced in 2021, diesel imports from Azerbaijan will stop. As a result, cheap diesel will not be able to enter the domestic market. Due to the lack of a cheap alternative, diesel will become even more expensive.
"As for the representation of a significant share of Azerbaijani fuel in the Georgian market, it is because it is 10-15 tetri cheaper and also about 86% of the diesel vehicles in Georgia are more than ten years old, and depending on the operating parameters of the engine, the quality of Azerbaijani diesel fuel fully satisfies them. Therefore, postponing the new government decree for one year is on the agenda, which will automatically lead to the fact that the product of the reliable strategic partner of Georgia will be presented on the market next year," the business union explains.
According to them, the presence of cheap diesel in the market is vital because it is usually used by those involved in economic activities. In particular, shipping, distribution, construction, energy. Including those employed in agriculture.
"Consequently, it is important for them to have access to relatively cheap products, especially at the current stage, when the economy is declining due to the pandemic," the business union explained.
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