Russians warned about a new increase in gasoline prices

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Photo: Kirill Kallinikov / RIA Novosti

Gasoline prices will continue to rise for 2019. This was stated by Russian energy Minister Alexander Novak, reports TASS.

According to Novak, the cost of fuel will increase within the inflation rate. The Minister also explained that the January spike in gasoline prices is associated with an increase in value added tax (VAT) from 1 January 2019.

On 9 January it became known that retail prices for gasoline in Russia in January increased by 1.7 percent. This is due to the increase of VAT from 18 to 20 percent and increasing fuel excise taxes. The Central Bank of Russia stated that the tax increase will affect all sectors of the economy, the price increase happens for all goods, including motor fuels, will spur inflation.

Prime Minister Dmitry Medvedev has proposed to increase VAT by two percent at a government meeting in June 2018. Later, the Minister of Finance Anton Siluanov noted that this measure will increase Federal revenues by more than 600 billion a year starting in 2019.

Video, photo All from Russia.

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