Why Petrol Price Doesn't Drop

    • Business - Tuesday, 03 July 2012, 10:09

Soon the petrol price will drop in the world but this decrease does not “threaten” Armenia. A 30% cut is forecasted in the international market, while only 2% in Armenia.

According to the National Statistics Service of Armenia, a 1.9% cut of petrol price from May was reported in June. Since December 2011, the price has grown by 10.9%.

According to the chairman of the Union of Consumers A. Poghosyan, the Committee for the Protection of Economic Competition has special competences to monitor the market, and from time to time it punishes the major importers. Howeverm the aim of the Committee should not be punishment but end of market dominance which is not done, says Mr. Poghosyan.

Management specialist Harutyun Mesrobyan says fluctuations of the price of petrol price is not consistent with international developments. According to him, with the dollar growing, a 15% cut could be expected.

According to him, when the international price of petrol grows, Armenia immediately reacts but when it drops, reaction is too slow.

Harutyun Mesrobyan says petrol prices will drop in the world because a “second wave” of crisis is approaching. In Armenia, the scenario will be the same. According to the expert, it is a matter of psychology of importers – they want to get profit, they do not care for cuts.

Note that 5 companies import petrol to Armenia but 80% is imported by City Petrol Group and Flash.

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