CPC explains LPG price hike in Armenia

Armenia’s Competition Protection Commission (CPC) has conducted a market study following a recent spike in liquefied petroleum gas (LPG) prices in the country. The investigation focused on the dynamics of supply and demand, as well as potential disruptions in the import and logistics chain.

According to a CPC statement released on Thursday, more than 170 economic entities are currently engaged in imports of liquefied gas into Armenia. The largest importer holds a market share of no more than 7% and only nine companies have an import share of 3% or more. This indicates a competitive market with no dominant players exerting control over pricing.

The CPC attributes the price hike observed in July to several key factors:

• Higher procurement costs for liquefied gas in international markets

• Logistical disruptions in Georgia, a key transit country for imports

• Seasonal congestion at border checkpoints, which has limited the number of freight vehicles entering Armenia

• Increased seasonal demand, which has outpaced available supply

In conclusion, the commission reports that the recent rise in LPG prices is not the result of monopolistic practices, but rather stems from increased import costs and seasonal demand fluctuations.