Wretched Poverty and Getting Worst

Increased price on petrol will cause a rise in consumer prices

Gulo Kokhodze, Akhaltsikhe

The minimal salary in the country is 115 GEL. One sack of wheat flour now costs 55 GEL and price on food products and petrol are increasing on a daily basis.

“When a shop-assistant requested 70 tetril for a small loaf of bread I nearly went crazy. I have a large family and we need at least four loaves of bread each day. And we cannot eat only bread,” said Leila Kapanadze, a resident of Akhaltsikhe.

The price of bread wheat increased from 50 to 55 GEL; a loaf of bread now costs 70 tetri instead of 60 tetri.

The population is completely astonished. “We cannot change anything and it does not depend on our methods of protest: crying, shouting or just going crazy. Everything has now become extremely expensive. Petroleum products are so expensive that I cannot buy it to burn myself up,” said Tamaz Kulijanishvili, a local resident standing in front of the Samtskhe-Javakheti regional administration building.

“Thus, we eat more bread, but it is not enough. In the past we bought two loaves of bread in the family but now we buy only one and mostly on credit,” said Naira Kurtanidze, a resident of Akhaltsikhe.

The price has increased on diesel for ten days already. Petrol is expensive too.

Consequently, transportation fees have also been increased. Traveling to the village of Atskuri costs thirty tetri more now; and passengers to the village of Ude-Arali have to pay more 60 tetri. Transportation fee from Akhaltsikhe to Tbilisi rose by five GEL.

Avto Mamukashvili, engineer-dispatcher of the Transportel Ltd, stated unless prices are reduced in the next ten days that fees and prices will be increased across the board. 

Nugzar Mamukashvili, director of the “Geo TV” Ltd agrees with Avto Mamukashvili.

‘Until now the fee was estimated according to the petrol price-1, 6 GEL. But now we cannot maintain old price levels; however, people cannot afford to pay increased fees,” he said.

Economist Guram Melikidze stated the increased price on petrol and food products was caused by the raise in prices on world market. “Prices of some products depend on petrol price. The products must be transported. Price on diesel rose in other countries too but Georgia is a developing country and the changes drastically impact the overall situation.”

Melikidze considers salaries should also increase to keep up with higher prices. However, that means more inflation on top of increased prices. “Increase in prices is irreversible process but in order to avoid rise in number of impoverished people, the salaries should also be regulated.”