One of the major importers of fuel in Armenia on Wednesday sought to justify a continued rise in oil and diesel prices in the country, citing the rising cost of oil and rising taxes introduced by the Armenian government. Fuel prices rose more than 2% last week, the third increase in two months. One liter of gas now costs at least 450 drams (94 US cents) at Yerevan’s petrol stations. The minimum price was 390 drams per liter in early December.
Barsegh Beglarian, whose Flash company accounts for about one-third of fuel imports in the country, said the latest price hike should have taken place in early January. “Taking into account the purchasing power of our people, we used our stocks to keep the price low until January 15,” he told the Armenian service RFE / RL (Azatutyun.am) .
Beglarian has claimed that even with existing prices, his company is struggling to avoid financial losses. “International [oil] prices have gone up dramatically,” he said. The importer also blamed the fuel tax increases that took effect on January 1. He criticized the government’s decision to raise taxes, which he described as “un-honest,” saying that Flash officials had warned the authorities last year that it would drive up prices. Beglarian insisted that his company was not interested in higher gasoline prices because more car owners will now switch to pressurized or liquefied natural gas, which is already the case for most vehicles in Armenia.
President Serge Sarkisian expressed concern over rising fuel prices at an emergency meeting with senior government officials and the Central Bank on Jan. 10. On the other hand, Prime Minister Karen Karapetian downplayed price increases. He said that gasoline is even cheaper in Armenia than in neighboring Georgia.
Nevertheless, the government has committed to subsidizing the price of diesel fuel for tractors and other agricultural machinery, in the hope that it will prevent farmers from raising prices for wheat and other agricultural products. Imports and fuel sales in Armenia have long been controlled by Flash and one or two other companies owned by individuals linked by the government.
Opposition politicians and other critics of the government say there is another reason for high fuel prices.
Claire © armenews.com
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