Platts' international price for gasoline has almost doubled since January 2021

Platts' international price for gasoline has almost doubled since January 2021

Nika Chitadze

Professor of the International Black Sea University

Director of the Center for International Studies

The global average retail price of gasoline has doubled over the past 20 years. This is a world trend, which has several main reasons, and the price of gasoline in Georgia could not ignore this inevitable reality. The price of various gas stations in the country has gradually increased. Only since October 1, the price has increased by an average of 10-15 tetri/liter, which is 3-4% of the price. In general, economists cite OPEC + 's restrictions on oil production, rising international prices for oil products, excise duty, and the GEL exchange rate as reasons.

Recently, the noticeable increase in prices in Georgia is mostly due to the first two reasons. S&P Global Platts is a platform that reports on the market price of energy products, including fuel. Through it, the price of fuel in the market is transparent. Platts allows customers to be convinced of how fair and objective the fuel is offered to them by oil-importing companies. For example, the price of gasoline at Platts increased from September 1 to November 1 to $ 822.25, an increase of 18% compared to September 1.

You can learn about the dynamics of gasoline price growth during the year from the statistics provided by Platts provided by the Union of Petroleum Importers.

As the data shows, the international price of Platts for gasoline has increased significantly this year. Which logically affects the retail prices of importers and sellers of petroleum products in each country.

In addition to the above, the price increase is caused by the strategy of OPEC +. Due to this strategy, there is an imbalance between supply and demand today. Despite calls from the leaders of the leading countries, OPEC + does not change the limit and raises the oil production limit by only 400,000 barrels per day. This increase is insufficient. The opening of the economy of different countries of the world also contributes to the growth of consumption. The resulting imbalance in turn makes fuel more expensive. Moreover, OPEC + forecasts that by 2022, fuel demand will reach 100.6 million barrels per day, which will be 500,000 barrels more than in 2019, the pre-pandemic rate.

Fuel excise tax rates are also high in Georgia, which affects fuel pricing. The increased excise tax in the country has been in force since 2017. Since that time the cost of excise duty on petrol has increased from GEL 250 to GEL 500 per tonne; For diesel - from 150 to 400 GEL.

The pricing of fuel, like any other imported product, is always reflected in the depreciation of the lari against the dollar.

Comments

Probability of Nuclear Weapons’ Disarmament from the Perspective of the Great Powers

Probability of Nuclear Weapons’ Disarmament from the Perspective of the Great Powers By: Sofi Beridze Nika Chitadze Abstract The article elaborates upon and analyzes the notion of nuclear weapons non-proliferation and clarifies its importance. Nevertheless, we demonstrate that total nuclear disarmament in contemporary competitive international politics is almost unattainable due to various factors. Initially, some countries that possess nuclear weapons strive to preserve their dominant position in the international arena, that’s why complete disarmament is impossible, and leading powers utilize them for their self-defense. Therefore, it’s out of the question to abandon ownership of them. The paper seeks to demonstrate the importance of “hard power” (regarding nuclear weapons) as a main tool for great powers to preserve preference. We mean maintaining power and primacy as much as they can, compared to other countries. In this article, it is determined whether nuclea...

Will Putin be able to persuade Lukashenko to directly involve the Belarusian army in the war with Ukraine?

Will Putin be able to persuade Lukashenko to directly involve the Belarusian army in the war with Ukraine? By: Nika Chitadze Professor of the International Black Sea University Director of the Center for International Studies President of the George C. Marshall Alumni Union, Georgia - International and Security Research Center As is known, Russian President Putin flew to Minsk on December 19 with his "landing" - Minister of Defense Shoigu and Minister of Foreign Affairs Lavrov, and held very serious talks with his Belarusian counterpart Lukashenko, which could greatly influence the course of the Russian-Ukrainian war in the next two to three months. The details of Putin's visit to the capital of Belarus were shrouded in secrecy - motorcades of Russian and US presidents usually use two identical armored limousines, which constantly change places in the motorcade to make it difficult for potential attackers of that parti...

АРЕСТ ПУТИНА – МИФ, КОТОРЫЙ МОЖЕТ СТАТЬ РЕАЛЬНОСТЬЮ?

АРЕСТ ПУТИНА – МИФ, КОТОРЫЙ МОЖЕТ СТАТЬ РЕАЛЬНОСТЬЮ? Как стало известно, 3 сентября запланирован визит российского лидера в Улан-Батор, где он должен принять участие в торжественных мероприятиях по случаю 85-летия совместной победы СССР и Монголии над японскими войсками на реке Халхин-Гол. Также запланирована официальная встреча с президентом Хурэлсухом. Визит Путина в Монголию в Кремле не вызывает «переживаний», несмотря на наличие ордера на его арест, который, по утверждению Международного уголовного суда (МУС) , Улан-Батор обязан выполнить. Примечательно, что Монголия станет первым государством, признающим юрисдикцию МУС, куда Путин намеревается поехать после начала полномасштабного вторжения в Украину. В конце лета 2023 года он отказался от поездки в ЮАР, которая также является страной-подписантом Римского статута. Вместо него тогда в Йоханнесбург, на саммит БРИКС, отправился глава МИД Лавров, а сам же Путин выступил лишь по видеосвязи. Напомним, что 17 марта ...

Center for International Studies

Search This Blog