What Is the Reason for the Rise in Gasoline and Diesel Prices in Armenia?

Gasoline and diesel prices in Armenia have reached almost astronomical levels over the past few months. Particularly, diesel is being sold at a price that is about 150 drams higher than gasoline, ranging between 650-670 drams, which is unprecedented.

The Minister of Economy, Vahan Kerobyan, in an interview with Hayrapet, did not hide the fact that there are unresolved circumstances regarding the high price of diesel today. In terms of gasoline, they have studied the situation and seem to have concluded that the price increase is normal.

The Competition Protection Commission, as always, is studying the market, only to issue a routine report and conclude its mission. In reality, a rather complex legal situation has arisen in the gasoline and diesel fuel market. The main importers—CPS, Flash, Max Oil—are reportedly not making profits from gasoline and diesel sales because they have started importing at very high prices.

The primary supplier, the Russian company Rosneft, has inexplicably raised the prices of both gasoline and diesel, not to mention the taxes and the rising logistics costs, resulting in extremely high prices with minimal margins.

Additionally, the fuel imported from Iran has also become more expensive, again for unclear reasons, leading to almost no competition in the market. The gas stations that are currently selling gasoline or diesel for 10-20 drams less are usually able to do so because they purchased large quantities at lower prices months ago. Once their stock runs out and they begin to import again, they too will sell at the increased prices.

The full article can be found in Hayrapet newspaper.