The Mystery of Rising Liquid Gas Prices and Azerbaijani Gasoline Costs

There is a shortage of liquid gas, and the available stock is almost doubled in price. For a prolonged period, drivers have been expressing their concerns about the liquid gas deficit, yet there is neither a listener nor a solution to the problem. This is reported by the newspaper 'Zhoghovurd'.

“Drivers are confidently stating in private Facebook groups that the liquid gas crisis is artificial. However, for instance, the Commission for the Protection of Economic Competition and Consumer Interests insists that the crisis stems from import-related issues. Just hours ago, one driver wrote, ‘Tomorrow there will be full gas coming in, more than 100 gas trucks have crossed Lars.’ In response, many despondently commented, ‘No matter how much comes, they will still be refilling at high prices—250-320 drams—until the supply lasts; why sell it cheap?’, ‘Maybe they want to rip us off a little more until those bringing it by train can no longer rely on the closed Lars route.’

This reflects a lack of trust in the state structures of Armenia. Interestingly, apart from the deficit, for which almost no institution is willing to take responsibility, the issue also lies in the fluctuating market price of liquid gas. For example, in Yerevan and the regions, there is a sharp price variation at different filling stations; in Yerevan, it costs 250-270 drams, while in the regions, it ranges from 290 to 320 drams.

Gegham Gevorgyan, the Chairman of the Commission for the Protection of Economic Competition and Consumer Interests, reassured journalists yesterday following a Government session that the rising prices of liquid gas are not alarming, noting that there are months when liquid gas prices rise significantly, one of which is January, and the other is June.

“There are 187 entities importing liquid gas in Armenia, and there can be no anti-competitive agreements or abuses of a dominant position in this sector. The price increase was the result of the current supply-demand relationship; the number of providers is high, while the supply is low. Soon it will come down, and there is nothing alarming about it. As the Prime Minister of Armenia stated at the previous Government meeting, once issues concerning transportation hubs are resolved, we will no longer be solely dependent on land transport,” assured the commission's chairman.

From the words of the commission's chairman, it is clear that there is no willingness to exercise control. According to economists, the only loophole in attributing blame to transportation issues is that the government is trying to praise the Azerbaijani railway. The liquid gas crisis has been created to facilitate the sale of gasoline imported from Azerbaijan. Drivers are making more assertive claims about this, as the price of liquid gas has risen to the point where it is more affordable to drive a gasoline vehicle,” writes the newspaper.