Commission investigating food, medicine, and fuel pricing publishes its findings
A temporary parliamentary commission established to examine the pricing structures of food products, medicines, and fuel has published its findings, concluding that effective policy should be directed not towards the administrative control of prices, but towards the structural improvement of markets, greater transparency, and enhanced efficiency across supply chains.
According to the document, the retail market is characterised by competitive dynamics and low levels of concentration. Profitability indicators within the sector align with international benchmarks, with no evidence of excessive margins.
“Georgia’s fast-moving consumer goods (FMCG) sector is one of the most significant and socially sensitive segments of the economy, with a direct bearing on both living standards and inflationary trends. Against this backdrop, the study aims to analyse the mechanisms of price formation within the sector, assess market structure, and develop corresponding policy recommendations.
The research findings demonstrate that price formation in the sector is a complex, multi-factorial process, shaped by the combined influence of every link in the supply chain: producers, importers and distributors, and retail networks alike. Accordingly, prices are not determined solely by cost or margin, but are substantially influenced by working capital costs, commercial terms, logistics, and wider macroeconomic factors,” the document reads.
The commission’s conclusions indicate that the retail market exhibits competitive dynamics with a low degree of concentration; that profitability levels in the retail sector are consistent with international standards and do not point to excessive margins; that commercial relationships and working capital conditions play a decisive role in price formation; and that the high-low (Hi-Lo) pricing model is widely used across the market, whereby a significant proportion of products are sold at a discount, meaning that the actual average price is systemically lower than the standard shelf price.
The challenges identified relate principally to asymmetries in commercial power along the supply chain; high working capital requirements and extended payment terms; supply chain efficiency and logistics costs; and insufficient market transparency, particularly in commercial terms.
As the commission’s report makes clear, these factors together create a systemic pricing environment and constrain the scope for price reductions in the absence of structural change.
The commission recommends that effective policy should target not administrative price controls, but rather the structural improvement of markets, greater transparency, and increased supply chain efficiency. To this end, the report recommends: in the medium term, strengthening the institutional framework, standardising commercial relationships, and developing a sectoral monitoring system; in the long term, improving logistical efficiency and fostering the development of private-label products to sharpen competition; and in the short term, deploying targeted and time-limited interventions capable of delivering price reductions for consumers in certain product categories without materially disrupting the functioning of the market.
“Systemic factors drive price dynamics in Georgia’s FMCG sector. The effectiveness of any policy response will thus hinge on its ability to tackle the market’s structural shortcomings, promote transparency, and enhance supply chain efficiency. In this process, the implementation of targeted, proportionate, and phased policy measures is an essential precondition for both price stabilisation and the sustainable development of the sector,” the commission’s report concludes.
The full text of the document has been published on the website of the Parliament of Georgia.
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Georgia toughens traffic fines
01.05.2026.17:24
Legislative amendments developed by the Ministry of Internal Affairs of Georgia (MIA) came into force today, with the primary aim of maximising compliance with road traffic regulations and preventing road traffic accidents.
Against the backdrop of a significant rise in the number of vehicles on the roads and growing mobility in recent years, road safety remains a persistent challenge. Despite progress made, hundreds of people are killed or sustain serious injuries in road traffic accidents in Georgia every year. In 2025 alone, 469 people lost their lives in road accidents, whilst a further 8,191 were injured.
The decision to stiffen existing penalties was driven by a comprehensive analysis of the causes behind road traffic accidents, as well as Georgia’s persistently high rate of road fatalities.
Under the legislative package, fines for some specific offences have been increased as follows:
The fine for violating vehicle manoeuvring rules on public roads has been raised to 100 GEL, and the offence now carries a deduction of 20 penalty points from the driver’s licence.
The penalty for exceeding the speed limit by more than 15 km/h but no more than 40 km/h has been increased from 50 to 100 GEL.
The fine for failing to wear a seatbelt, whether as a driver or passenger, has been raised to 50 GEL and carries a deduction of 10 penalty points.
The penalty for using a mobile phone whilst driving has likewise been increased to 50 GEL.
Fines for violating stopping and parking rules have been raised to 50 GEL in Kutaisi, Batumi, Mtskheta, Rustavi, Gori, Telavi, Poti, Zugdidi, Akhaltsikhe, Ozurgeti, and Georgia’s resort areas, bringing them in line with Tbilisi, as well as for vehicles in categories M3, N2, N3, or T.
Drifting that results in minor damage to property or injury to a person will carry a 500 GEL fine and a six-month suspension of the driver’s licence.
Repeat violations of traffic rules that create a hazardous situation or cause traffic congestion will result in a 300 GEL fine and a deduction of 30 penalty points.
A 500 GEL fine has been introduced for N2 and/or N3 category vehicles travelling on public roads in Tbilisi when Tbilisi is not the intended destination for the freight being carried.
Stopping or parking on a pavement or pedestrian crossing has been designated a new offence, carrying a fine of 100 GEL in Tbilisi, Kutaisi, Batumi, Mtskheta, Rustavi, Gori, Telavi, Poti, Zugdidi, Akhaltsikhe, Ozurgeti, and Georgia’s resort areas, and 10 GEL in all other municipalities.
Driving on a pavement will be punishable by a 200 GEL fine and a deduction of 30 penalty points.
The amendments also establish a new prohibitory road sign, ‘No Stopping Near a Fire Hydrant’, which bans both stopping and parking in the vicinity of fire hydrants. Non-compliance will result in a 200 GEL fine, and vehicles may be towed to an authorised impound facility.
Finally, the regulations governing the use of bus lanes by vehicles other than scheduled public transport have been revised. Driving in a bus lane will continue to carry the existing 100 GEL fine, with the addition of a 15-point deduction; repeat offences will attract a 150 GEL fine and a 30-point deduction. Using, stopping, or parking in a contraflow bus lane will result in a 200 GEL fine and a 20-point deduction, rising to 300 GEL and 30 points for repeat offenders.
