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ONE MORE PRICE HIKE: PETROL PRICES UP AS WORLD MARKET INCREASES CONTINUE
By Gohar Abrahamyan
ArmeniaNow
28.03.12 | 15:05
Petrol and diesel fuel prices have gone up in Armenia during the
recent two months, which according to economists is unprecedented
and has caused a wave of discontent among consumers.
Only within the last week the petrol price increased by 5 cents,
thus, since this January the price of one liter of petrol has risen
by about 50 drams (about 12 cents), and that of the diesel fuel -
by 20 drams (about 5 cents).
Last Saturday the major gas stations in the fuel market of Armenia -
Flash (42.62 percent shares in the petrol market) and City Petrol Group
gas stations simultaneously raised the prices, as a result of which the
price of one liter of "Regular" petrol reached 490 drams (about $1.25),
"Premium" and "Super"- 510 drams and 540 drams (about $1.31 and $1.39)
respectively, and diesel fuel - 460 drams (about $1.20).
According to Armen Poghosyan, head of Union of Consumers NGO, the
petrol price hike in such a short period of time is unprecedented,
and it is the result of another misuse of the monopoly position. (A
few days ago one of the major companies which imports and sells fuel
- City Petrol Group - was fined for a total of 100 million drams,
about $257,000, for misusing its monopoly position.)
"The petrol price hike does not affect only motorists, but it has
a direct influence upon price hikes of other products, including
agricultural products, as well as products which are imported to
Armenia from other countries by vehicles," Poghosyan told ArmeniaNow,
adding that their union gets numerous complaints from consumers,
regarding both high prices and the poor quality of fuel.
Mushegh Elchyan, deputy head of the Marketing Department of Flash
Company, told ArmeniaNow that the price hike is solely linked with
developments in the world fuel market.
"There has been a 26-percent rise in petrol's international price since
this January, whereas in Armenia there is only an 11-percent price
rise," Elchyan says adding that the price hikes are still expected,
because the high price confirmed in the international market has not
fully reached Armenia yet. "Now we are selling the fuel resources
imported earlier."
According to Elchyan, the petrol price is not a social issue in
Armenia, because he believes that currently more than 80 percent of
cars in Armenia use gas as a fuel, and "only the middle, high and
richer stratums of society use petrol."
The State Commission for the Protection of Economic Competition (SCPEC)
representatives report that they have started an examination to find
out the reasons of petrol and diesel fuel price hikes.
By Gohar Abrahamyan
ArmeniaNow
28.03.12 | 15:05
Petrol and diesel fuel prices have gone up in Armenia during the
recent two months, which according to economists is unprecedented
and has caused a wave of discontent among consumers.
Only within the last week the petrol price increased by 5 cents,
thus, since this January the price of one liter of petrol has risen
by about 50 drams (about 12 cents), and that of the diesel fuel -
by 20 drams (about 5 cents).
Last Saturday the major gas stations in the fuel market of Armenia -
Flash (42.62 percent shares in the petrol market) and City Petrol Group
gas stations simultaneously raised the prices, as a result of which the
price of one liter of "Regular" petrol reached 490 drams (about $1.25),
"Premium" and "Super"- 510 drams and 540 drams (about $1.31 and $1.39)
respectively, and diesel fuel - 460 drams (about $1.20).
According to Armen Poghosyan, head of Union of Consumers NGO, the
petrol price hike in such a short period of time is unprecedented,
and it is the result of another misuse of the monopoly position. (A
few days ago one of the major companies which imports and sells fuel
- City Petrol Group - was fined for a total of 100 million drams,
about $257,000, for misusing its monopoly position.)
"The petrol price hike does not affect only motorists, but it has
a direct influence upon price hikes of other products, including
agricultural products, as well as products which are imported to
Armenia from other countries by vehicles," Poghosyan told ArmeniaNow,
adding that their union gets numerous complaints from consumers,
regarding both high prices and the poor quality of fuel.
Mushegh Elchyan, deputy head of the Marketing Department of Flash
Company, told ArmeniaNow that the price hike is solely linked with
developments in the world fuel market.
"There has been a 26-percent rise in petrol's international price since
this January, whereas in Armenia there is only an 11-percent price
rise," Elchyan says adding that the price hikes are still expected,
because the high price confirmed in the international market has not
fully reached Armenia yet. "Now we are selling the fuel resources
imported earlier."
According to Elchyan, the petrol price is not a social issue in
Armenia, because he believes that currently more than 80 percent of
cars in Armenia use gas as a fuel, and "only the middle, high and
richer stratums of society use petrol."
The State Commission for the Protection of Economic Competition (SCPEC)
representatives report that they have started an examination to find
out the reasons of petrol and diesel fuel price hikes.