What Causes Price Fluctuations in the Gasoline Market: The Competition Protection Commission Explains

The Competition Protection Commission constantly monitors price fluctuations in the gasoline market. They report that gasoline pricing is determined by several factors, particularly changes in gasoline prices in international markets, currency fluctuations, and transportation costs, among others.

Commission studies have shown that the average import price for a liter of regular gasoline was 0.41 cents in January 2023, while in September it rose to 0.8 cents. Additionally, the average exchange rate was 390 drams in January and increased to an average of 414 drams in October. Based on this information, we can conclude that the rise in gasoline prices is due to both the increase in import prices and a certain rise in the exchange rate of the dollar.

The commission also notes that gasoline prices constantly fluctuate due to the aforementioned factors. In the first eight months of 2022, the price of regular gasoline ranged between 500-520 drams, while premium gasoline was priced between 520-540 drams. In contrast, from January to May 2023, due to low import prices and the appreciation of the dram, prices for regular gasoline fluctuated between 320-350 drams, with premium prices between 350-370 drams.

Thus, due to changes in gasoline prices in international markets, including fluctuations in the dollar exchange rate, there are constant fluctuations in the gasoline market, leading to lower prices in some months and higher prices in others.

The commission regularly assesses the proportionality of factors affecting gasoline prices and any fluctuations. When violations of competition legislation are identified, proceedings are initiated.

It is also worth noting that yesterday it was reported that the price of gasoline increased by 50 drams in just one day.