Diesel fuel imported by Georgia from Azerbaijan may soon completely replace Russian supplies, according to the Chairman of the Georgian Union of Petroleum Product Importers, Vakhtang Iobashvili.
In an interview with BusinessPress, Iobashvili said demand for Azerbaijani diesel has been rising sharply, noting that the product meets the Euro-5 standard, is already exported to Europe, and is becoming increasingly attractive for the Georgian market.
According to Geostat, in October 2025, Georgia imported 29,734 tons of diesel and other fuels from Azerbaijan worth $20.035 million – 352.3 times higher than in the same month a year earlier. In October 2024, imports totaled only 84.4 tons, with the surge attributed primarily to diesel volumes.
Iobashvili estimates that demand for Azerbaijani diesel in Georgia has already grown by 40% and will continue to increase.
Quality, Logistics, and Lower Transportation Costs
The chairman highlighted that Azerbaijan’s main advantages are both product quality and shorter logistics routes. The Baku–Tbilisi supply corridor is significantly shorter than routes from Russia, directly reducing transportation costs.
He added that Georgian laboratories have confirmed the Euro-5 compliance of Azerbaijani diesel, making it a competitive option for local consumers.
“This will positively affect prices. Russia is a large country, and longer distances mean higher logistics costs. Azerbaijani logistics services are more affordable,” Iobashvili said.
Price Competitiveness Driven by Logistics, Not Origin
Iobashvili noted that the final price of diesel in Georgia is determined primarily by international Platts benchmarks, meaning large price gaps between suppliers are unlikely.
However, lower logistics costs could still make Azerbaijani diesel cheaper at the pump.
“Logistics costs are low, but everything still depends on Platts prices and railway tariffs – and tariffs change every year,” he said.
