Fuel prices soar in Armenia amid reports of holdups in Georgia

The price of liquified petroleum gas, which most drivers in Armenia use to fill their cars, soared this week amid reports Georgia was blocking the transit of the Russian-produced fuel, straining household budgets across Armenia.

LPG prices grew by more than 40% this week, as Armenian importers said up to 500 trucks loaded with the Russian-made fuel remained stuck at customs in Georgia. The importers said they had not been made aware of the reason behind the reported holdups.

Georgia has so far not commented on the matter, though former President Salome Zourabichvili, a fierce critic of the current government, decried the apparent blockage in a post on X.

“Georgia must stand as a true partner, not a channel for pressure. Such actions damage trust and regional economic stability. This must stop now,” she wrote.

The reported holdups come just months after Georgian customs officials prevented trucks carrying Armenian brandy and wine from entering Russia for weeks at a time, throwing Armenia’s multimillion-dollar, export-dependent alcoholic beverages industry in serious jeopardy.

Armenian and Georgian officials have since suggested they had settled the beverages dispute, though some producers continue to report issues.

Armenia and Russia conduct most of their business with each other overland through Georgia. Trade between Moscow and Yerevan topped $12 billion last year, making Russia Armenia’s largest economic partner.

Photo credit: Azatutyun.am