The average price of gasoline in Armenia has reached 630 drams per liter, exceeding the global average and prices in neighboring Georgia and Azerbaijan, according to data published by the international platform GlobalPetrolPrices on October 5.
The data show that the average price of one liter of 95-octane gasoline in Armenia is equivalent to approximately $1.74, compared with the global average of $1.48.
According to statistics from the same platform, gasoline costs approximately $1.64 per liter in neighboring Georgia and $0.68 in Azerbaijan. Consequently, fuel prices in Armenia are around 6% higher than in Georgia and more than 2.5 times those recorded in Azerbaijan.
The increase in gasoline prices in Armenia has become particularly noticeable in recent months. According to GlobalPetrolPrices, fuel prices have risen by 8.6% in just one month, 14.5% over three months and 18.9% compared with the same period last year.
On September 29, Radio Free Europe/Radio Liberty’s Armenian Service published a study showing that gasoline prices in Armenia had increased at a faster rate than in several countries from which the Armenian market imports fuel.
At the time of the study, the average retail price of premium gasoline at filling stations operating in Armenia was 621 drams per liter, representing a 10.53% increase over one month. The broadcaster emphasized that the scale of the price increase recorded in Armenia did not correspond to the level of price fluctuations in international fuel markets or in supplier countries.
Several factors influence gasoline prices in Armenia, including international petroleum product prices, exchange rate fluctuations, import and transportation costs, taxation, and competition in the domestic market.
Armenia is heavily dependent on imported fuel, meaning that changes in international markets or supply processes can be directly reflected in domestic retail prices.
Economist Suren Parsyan has emphasized the importance of not only diversifying Armenia’s fuel supply sources but also developing alternative import routes. In his assessment, reducing transportation and transit costs could create favorable conditions for more competitive pricing policies in the fuel market.
Rising gasoline prices have affected not only the financial expenses of car owners and drivers but also the cost structures of freight transportation, logistics services and business operations. Persistently high fuel prices could generate additional inflationary pressures across various sectors of the economy, contributing to higher costs for goods and services.
At the same time, comparisons between countries in the region reveal substantial differences in gasoline prices. The increase recorded in Armenia remains a central topic of economic discussion, given its potential impact on both consumers and various sectors of the economy. (Panam)