Georgian PM: Government to examine all pricing factors, downplays role in 86% markup

Georgian prime minister Irakli Kobakhidze on Saturday said that his government was ready to review all regulations and penalties that could have even a minimal impact on pricing, emphasising openness to reassessing any potentially excessive measures.

Speaking on Imedi TV show Open Air - Debates, Kobakhidze noted that while individual factors - such as fines or specific regulations - can be examined, their overall influence on price formation remains limited, particularly in the context of an 86% markup.

“As an example, if we take parking fines, which amount to around one million annually, this translates to roughly 25 tetri per capita per year. Even if this were the only issue, its impact would be minimal”, he said.

The prime minister acknowledged that every contributing factor deserves attention, but stressed that such elements likely play only a marginal role in overall pricing.

“When we are talking about an 86% markup, factors like these would not account for even 1% of that figure”, he added.
He further reiterated that his government remains ready to examine any regulation or fine that could influence pricing, even slightly, though he underlined that these factors are not considered significant drivers of price increases.

“However, I agree that every issue should be examined. We are ready to discuss everything - if there are excessive regulations, excessive fines, and so on - that may have even a marginal effect on price formation. Of course, we are prepared to review them, though issues of this type are less significant in terms of their impact on pricing”, Kobakhidze concluded.