The FINANCIAL — Eco Georgia, subsidiary company of Greece’s largest commercial and industrial group, Hellenic Petroleum, has stopped its presence on Georgia’s petrol market.
From July 2011, Gulf Oil controls Eco Georgia’s 20 petrol stations. Gradually, Eco’s red label is being replaced by Gulfs orange one.
Eco Georgia was established in 1995. It was one of the earliest foreign investments in Georgia. Eco Georgia was offering its customers a high quality fuel from Greece and one of the best services in its petrol stations. Products sold by Eco Georgia were always more expensive than products offered by rivals. The company had very few advertisements in the media but it was still hugely popular.
Eco Georgia was awarded by the ‘Oil Producers, Importers and Consumers Union’ as the best foreign oil company between 2005 and 2007. Among large taxpaying oil companies, Eco Georgia took fifth place.
The company’s infrastructure included the company itself and 16 petrol stations, 1 leased filling station, 2200 m2oil, a 220 m2warehouse and 400 m2 offices. It owned less than 5% of the market.
Despite the fact that Eco Georgia has been shut down, Hellenic Petroleum continues its business on the Georgian market and is still cooperating with Gulf Oil. The reason why Eco Georgia was replaced by Gulf oil has not explained by either company.
The representatives of Hellenic Petroleum have already left the country. Eco Georgia’s offices are closed and the whole staff was let go. “The most likely reason was that Eco Georgia couldn’t comply with the Greek side’s requirements anymore and therefore Hellenic Petroleum decided to change its partner on the Georgian market,” The FINANCIAL was told by a source close to the deal.
Gulf Oil, the new player for Hellenic Petroleum, is the official distributor of the world oil giant Gulf Oil International. The petrol stations of Gulf Oil are governed by Sun Petroleum Georgia.
“We didn’t buy the petrol stations of Eco Georgia, but we got them under our control,” said Lasha Tevzadze, marketing manager of Sun Petroleum Georgia. “In spite of the good image and good location of its petrol stations, Eco Georgia had very small shares on the market. It was in our interests to control their stations as they are located in strategically important areas,” added Tevzadze.
Today, Gulf Oil International (GOI) employs the world’s leading technologists to produce and market the highest quality fuel and lubricants in more than 70 countries. After America, England and Israel, Gulf Oil is going to cover the Georgian market.
Gulf's shareholders, who recognized the enormous potential in the Georgian market, have acquired filling stations from Senta, Magnati and Eco Georgia. This has initiated a multi-million renovation and rebranding program to allow the implantation of the well-known global brand in its stations and facilities. Gulf-Ge operates 120 layouts and is going to increase it up to 150 layouts throughout Georgia and it will be the first oil company to have such a large quantity of stations on the market.
It is possible all these processes have made changes on the Georgian fuel market. One of the largest companies has appeared and has replaced one of the most experienced companies on the Georgian market. “First of all, this is good for consumers as they will have a wider choice. Competition will be increased and it might cause discounts on prices and better service,” said Giorgi Kotrikadze, director of the Association of Oil Products Imports. “Gulf plans to have more than 140 petrol stations.
If all its plans are implemented, it will be the largest company on the market,” he added.
“I don’t think the situation has been changed significantly after Eco Georgia left Georgia,” said Tevzadze. “As for our company, we plan to make the most extensive network of petrol stations, which will be closer to our present and future clients. Our share will continue increasing which will automatically cause the reduction of other networks,” he added.
The prices on Gulf petrol stations are almost the same as the prices of Eco Georgia: Regular -2.10 GEL, Euro Regular – 2.12 GEL, Premium – 2.20 GEL, Super – 2.30 GEL, Diesel – 2.15 GEL and Euro Diesel – 2.30 GEL (all prices are per litre).
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