The Increase in Liquid Gas Prices Is Not Aligned with Changes in the International Market, Economist Says

The increase in liquid gas prices in our country is not aligned with the changes that have occurred in the international market, said Karlen Khachatryan, head of the Department of Management and Business at Yerevan State University, in an interview with Armeniasputnik.am, citing a statement from Armenia's Competition Protection Commission (CPC).

In the CPC's clarification yesterday, it was noted that the price increase is due to processes in the global liquid gas market, particularly due to the easing of restrictions related to the pandemic, as well as seasonality, which has contributed to an increase in demand.

If we compare Armenia with other countries in the region, it is evident that the price of liquid gas in our country is much higher than in Russia, Georgia, and other countries, said the economist.

According to Khachatryan, local businesses are trying to obtain excessive profits, and the relevant authorities, represented by the Competition Protection Commission, are not taking any steps to prevent inflation and rectify the situation. He suggested that cartel agreements might be possible among the operators in the gas market, and the commission is not entirely honest in its assessment. Yes, there are more than 50 operators in the market, but they mainly deal with fuel sales, while the number of importers is significantly smaller, thus indicating potential secret agreements and certain arrangements.

I have the impression that the commission does not see or does not want to see all of this and is trying to shift the responsibility off onto economic factors or attribute inflation to economic processes, which is not the case, said the economist.

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