Fuel Union have warned the government about the new jump in gasoline prices

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www.vsyako.netPhoto: Vitaly Belousov / RIA Novosti

The cost of gasoline in Russia could rise sharply. This writes belongs to Grigory Berezkin the RBC with reference to the letter from the head of the Independent fuel Union Pavel Bazhenov, addressed to Deputy Prime Minister Dmitry Kozak.

The letter States that the situation on the Russian fuel market begins to chant the spring of 2018, when the fuel at the pump rose sharply. So, from April 15 to may 15, 2019 at the St. Petersburg international commodity exchange, the wholesale price of gasoline AI-92 has increased by 23 percent, and gasoline AI-95 jumped 18.5 percent. The price of summer diesel fuel increased by 2.5 percent. According to the letter, the growth of gasoline prices on the stock exchange is reflected in the shallow protected areas. In particular, in the Saratov region for the specified 30 days, the cost of AI-92 increased by 11.2 per cent, and for AI-95 and summer diesel is 10.4 and two percent, respectively.

Bazhenov, in his letter said that the prices at which major market players are the raw material let smaller companies rise almost every day in all regions of the country. The damping mechanism of the government, which should provide sufficient margins for refiners and retailers at the expense of subsidies, does not work. In his letter Bazhenov explained that in 2019, the industry was in crisis, and if a large company can still make ends meet, the independent processors record only losses. The head of the Union urged the government to take urgent measures in order not to repeat the events of 2018.

In the spring of 2018, the cost of fuel at filling stations has risen above the rate of inflation nearly five times. Besides, in the summer, the state Duma adopted the law on completion of Russia’s tax maneuver. It involves the abolition of export duties on oil and gas with simultaneous increase in the tax on mineral extraction (met). In this situation the oil companies to become more profitable to export their fuel derived from gasoline than to sell it in the domestic market. As a result, within countries there is a shortage, and more expensive gasoline. To avoid this, the government has included a reverse excise tax, which is paid to oil companies provided that they supply the domestic market enough oil. Besides, provided that the company is holding domestic prices within a predetermined corridor, opposite the excise tax is complemented by damping the premium. In April, the Cabinet had reached with the oil workers of the new agreement to freeze prices for gasoline, which should last until July.

Video, photo All from Russia.



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