TBILISI, September 7 – Fuel prices have increased sharply in Georgia, adding to inflation and prompting opposition calls for the government to temporarily cut the excise tax on gasoline and diesel.
TBC Capital said on Friday that gasoline and diesel were responsible for nearly half of Georgia’s seasonally adjusted monthly inflation in August. Annual inflation stood at 5.6%, while renewed tensions in the Middle East were continuing to push fuel prices higher. Brent crude had reached USD 97 a barrel by September 3, its highest level since July.
Fuel is also among a small group of products driving much of Georgia’s annual inflation, Interpressnews reported. According to TBC Capital, gasoline, diesel, electricity, beef and bread together accounted for almost half of the overall annual inflation rate.
Tazo Datunashvili, a leader of the opposition Lelo party, said Saturday that prices had risen again during the previous week. He said Euro 5 diesel at SOCAR stations had increased by 14 tetri to GEL 4.34 per liter, while Wissol’s Diesel Energy rose by 8 tetri to GEL 4.45. At Gulf, Euro Regular gasoline had risen by 6 tetri to GEL 3.75 and G-Force Premium by the same amount to GEL 3.93.
Datunashvili, citing official statistics, said diesel prices were 39% higher than a year earlier and gasoline prices were up 23%. He called on the government to cut the fuel excise tax back to its pre-2017 level, arguing that cheaper fuel would also ease costs for agriculture and other goods and services.
Other opposition politicians have also called for a reduction in the fuel tax, as the prospects of further increases cannot be excluded with international energy markets under pressure. TBC Capital said the latest escalation in the Middle East was affecting Georgia mainly through inflation rather than economic growth. Fuel prices had briefly eased at the beginning of July before turning upward again.
TBC Capital’s baseline forecast assumes some decline in oil prices during the rest of 2026 and annual inflation of around 6% in December. It warned, however, that if oil prices remain at current levels or rise further, its inflation forecast could also increase.
