Economist on Recent Rise in Gasoline Prices

Armenia is not an oil-producing country, and therefore gasoline cannot be cheap here. This was stated by economist Armen Ktoyoan in an interview with Sputnik Armenia.

He addressed the recent fluctuations in gasoline prices. At the beginning of 2023, the cost of one liter of premium 94-octane gasoline was around 320-340 drams, but it has now risen to 520 drams. Previously, the highest price for gasoline was recorded in April 2022, when a liter of premium gasoline cost 540 drams.

According to Ktoyoan, the price drop that was observed in recent months is a rare and one-time phenomenon. He provided several justifications for this. He reminded that Russia is the main supplier of gasoline to Armenia, with smaller volumes from Egypt, Greece, and Iran (due to transportation issues, especially following the 2020 war).

When the price of gasoline in Armenia fell, Ktoyoan attributed the cause to the fact that oil refining companies in Russia continued their operations as before, but due to Western sanctions, demand began to decrease, and export volumes diminished. "During that period, Armenian suppliers who were able to acquire gasoline from oil refining companies under certain privileges granted by our membership in the EAEU did not increase prices," emphasized Ktoyoan.

Among the other factors contributing to the rise in gasoline prices in Armenia, Ktoyoan highlighted the appreciation of the ruble by the Central Bank of Russia, as well as logistical challenges.