Why Gasoline is Incomparably Cheaper in Russia and Belarus: Gegham Gevorgyan Explains

Gegham Gevorgyan, a candidate for the position of President of the Competition Protection Commission, presented important insights during a session of the National Assembly regarding the phenomenon of dumping in the sugar market. He stated, "Let's establish right away that dumping is a bad phenomenon. In the sugar market, we have faced penalties related to this situation, and if we exclude 2023 due to quota issues, you will see significant changes in market shares up until 2022." He was responding to a question from Arthur Hovhannisyan, the secretary of the Civil Contract faction, concerning dumping and the prevailing situation in the sugar market.

“An economic operator was attempting to engage in dumping, for which we already have a decision,” he noted.

In response to a question from opposition MP Garnik Danielyan about fuel undercharging, Gevorgyan stated that matters concerning undercharging and quality fall more within the jurisdiction of inspection bodies. However, he emphasized the need for regulations and standards that would help consumers feel more protected. “Of course, operators will constantly try to act in their own favor. Our task is to create an environment that minimizes these opportunities as much as possible,” he added.

Regarding MP Gegham Nazaryan’s inquiry about why gasoline is more expensive in Armenia compared to EAEU countries, Gevorgyan clarified that gasoline is cheaper in Russia and Belarus due to subsidization in the domestic market. “Dear citizens, if you want to have, for example, a product priced at 500 drams, whether it be gasoline or sugar, at 200 drams, the government needs to subsidize it from your taxes. This is not the best practice in the world, and we do not encourage it,” Gevorgyan explained.

On the fluctuations in gasoline prices, he noted that the Competition Protection Commission has opened a case regarding dumping since, at that time, gasoline was sold at higher prices in Russia than in Armenia. “The amount of gasoline in Armenia is only 250 thousand tons, and honestly, it concerns a much smaller number of citizens than we keep discussing. Currently, we have an ongoing case related to gasoline, which I believe will conclude in about a month, and you will see the results. We will soon publish a mechanism for gasoline pricing, as we have already reached an agreement with operators, since there is a component of commercial confidentiality,” he concluded.