Rising global fuel prices have already pushed up gasoline prices in Armenia and are expected to add further pressure to inflation, Armenian Central Bank Governor Martin Galstyan said.

“Gasoline consumption accounts for about 5% of the consumer basket. This 5% increase is significant at the moment, and we see that the price of gasoline has already reached 580-600 drams [an increase of at least 5%],” Galstyan said, according to Sputnik Armenia.

The Central Bank chief warned that the impact could extend beyond fuel prices, as higher gasoline costs feed into transportation and other consumer prices.

The global surge in oil prices has been linked to a sharp decline in the number of tankers passing through the Strait of Hormuz.

The situation is also reflected in the decline in US strategic oil reserves, which have fallen from around 700 million barrels to 300 million barrels.