Record gasoline prices: why diesel is more important
Kentron Channel · 19 minutes
“The price of gasoline is currently 580 drams per liter, and this is a peak, that is, such a price has never been on the market, but the price of diesel fuel is actually much more important for the market. This year we have two shocks, unlike one shock in 2022. The first is the closure of Hormuz, which affected the prices of petroleum products worldwide, and the second shock is the attacks on oil refineries in Russia, which also limited diesel fuel and gasoline production. Many people believe that the price of gasoline has increased because there is an oligopolistic cartel among our importers. There is no such thing at the moment. As soon as global petroleum product prices rise, our prices rise after three to six months.”
“Many people think that gasoline is important for the economy. No, diesel fuel is more important, because diesel fuel provides freight transportation, as well as the movement of heavy agricultural machinery, and is used in construction. In other words, if diesel fuel becomes more expensive, everything in the economy will become more expensive in a chain reaction. In the Republic of Armenia, diesel fuel is almost the most expensive in our region. It is more expensive only in Ukraine and Moldova, which are either in a war zone or in an adjacent zone. Economic growth will continue to grow, but it will mainly be in the financial sector and in sectors related to construction, and agriculture will continue to decline, which is quite negative for the regional economy.”
Topic Analysis: Gasoline Price Shock: Where Did Russian Fuel Disappear?