Parliamentary Commission to Study Food, Medicine, Fuel Prices Established

Georgia’s disputed Parliament established an Interim Commission to Study the Pricing Structure of Food Products, Medicines, and Fuel, with its members already approved. The commission is expected to begin work in the coming days and will operate for three months as part of the Georgian Dream government’s stated efforts to tackle high prices.

The Commission will have 14 members, proportionally representing the parliamentary groups, with Georgian Dream holding seven seats, the opposition For Georgia party three, GD’s offshoot People’s Power three, and another offshoot, the European Socialists, one member. The members are:

Georgian Dream (7)

• Shota Berekashvili – Commission’s Chair
• Nino Tsilosani
• Maia Bitadze
• Paata Kvizhinadze
• Vakhtang Turnava
• Zaza Lominadze
• Gela Samkharauli

Gakharia-For Georgia (3)

• Giorgi Sharashidze
• Shalva Kereselidze
• Ketevan Bakaradze

People’s Power (3)

• Guram Macharashvili
• Dimitri Khundadze
• Eka Sepashvili

European Socialists (1)

• Ilia Injia

“Within the scope of its mandate, the commission will ensure a transparent and objective examination of the mechanisms for the formation of prices of food products, medicines, and fuel,” the official press release from the Parliament said, adding that the commission “will elaborate and prepare relevant conclusions and recommendations.”

The establishment of the parliamentary commission follows a call from Georgian Dream Prime Minister Irakli Kobakhidze, who raised the issue of high consumer prices in late December, suggesting they could result from possible cartel-like coordination among businesses and warning of anti-monopoly measures.

The Georgian Dream government had already established a separate government commission, which has been meeting with representatives of retail chains, distributors, pharmacies, and the oil sector, as Irakli Kobakhidze blamed high markups while saying that prices are expected to decrease by April.

“The government and the business sector need to sit down together to find ways to reduce prices, and I believe this is achievable,” Kobakhidze told reporters on February 4. “We have an announced process that will last, at most, until the end of April; however, it should be possible to reduce prices even before then. We will continue consultations with the business community to achieve this goal.”

The State Security Service of Georgia (SSSG) also launched an investigation. On January 22, the SSSG entered supermarket chains and distribution companies, a day after the government commission met with retail chain representatives. The SSSG said it was seizing documents to examine price formation.

Critics, however, claim that Georgian Dream is trying to crack down on businesses.

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