Devaluation of dram has affected petrol prices in Armenia – antitrust agency
25.12.2014,
17:43
Devaluation of the national currency has impacted petrol prices in Armenia, Artak Shaboyan, head of the State Commission for Protection of Economic Competition, said on Thursday.
YEREVAN, December 25. /ARKA/. Devaluation of the national currency has impacted petrol prices in Armenia, Artak Shaboyan, head of the State Commission for Protection of Economic Competition, said on Thursday.
He told journalists that the commission has launched monitoring at the petrol market and will complete it soon. In his words, petrol prices started going down in September reaching 440 drams per one liter of Regular by mid-November from 470 drams in September, but after that petrol leapt to 470 drams, and the dram sank about 13% over the same period.
«It means if the dram didn't devaluate, petrol prices would continue their consistent downward motion,» Shaboyan said.
Asked why oil's sharp dive at the world market doesn't drive petrol prices in Armenia down, he said that studies in price-making process show the share of oil's cost in the final price for petrol is small – no larger than 10%.
Oil-refining expenses constitute the key component of the petrol price. The share of taxes in the petrol price is significant as well.
Shaboyan said that a change in the oil price by one notch has a very slight impact on the final cost of the final product in Armenia. He said referring to latest studies that Armenian companies imported petrol from Russia's market, where, unlike international markets, petrol prices’ downward movement was sluggish.
He also said that Armenian importers' procurement prices for petrol are completely in tune with petrol prices in Russia.
As for reorientation to European market, where the petrol fall was more visible, Shaboyan said that petrol, unlike other commodities, is imported on the basis of long-term contracts, and it is impossible to change strategic partners within a short period of time.
Besides, this is a decision of business entities that calculate their own profits and choose more reasonable direction for their businesses.
The National Statistical Service of Armenia says petrol prices shed 3.3% in November 2014, compared with the previous month, and diesel slid 1.3%.
According to the statistical report, petrol plunged 6.1% and diesel 4.1% in November 2014, compared with the same month a year before. Nonfood prices went 0.9% up in Armenia in November, compared with October. --0------
