Gasoline In Russia May Rise In Price By 14 Percent At Once

2023 Author: Natalie MacDonald | [email protected]. Last modified: 2023-05-21 02:36

Experts from the Independent Fuel Union warned of the possibility of a repeat of the fuel crisis in Russia, similar to 2018. According to experts, quoted by Izvestia, gasoline will rise in price rapidly. The Energy Ministry called the measures already taken "sufficient."

• According to NTS experts, retail prices for gasoline and diesel by the end of the year may increase above the inflation rate: according to the most pessimistic forecast, their growth will be 14% (the annual inflation rate as of January, cited by the government, was 4.9%). According to experts, the main growth drivers are the increased attractiveness of the export alternative and the close start of the season of increased demand for fuel.
• The Independent Fuel Union sent a letter to Prime Minister Mikhail Mishustin asking him to take additional measures to prevent the risks of price increases. Experts propose, in particular, to reduce excise taxes on fuel and cancel the damper mechanism currently in force.

• The Ministry of Energy has already commented on the proposal of NTS. According to Deputy Minister Pavel Sorokin, all the necessary urgent measures have been taken. The formula by which the damper mechanism is calculated has been adjusted and will work from May 1, and its cancellation, according to the authorities, will deprive the market of protection. According to the calculations of the department, the increase in retail prices, which is now being recorded, does not exceed the rate of inflation.
• In January, wholesale prices for gasoline set an annual record: at the St. Petersburg Commodity Exchange, a ton of AI-92 was estimated at 53.4 thousand rubles. As of March 17, the same ton of gasoline on the exchange was already worth 53.6 thousand rubles.