By Vestnik Kavkaza
Gasoline prices on the Russian stock market grew by 6-7 rubles per litre. Prices for diesel fuel and gasoline at fuel stations will increase as well. Experts state the situation is in crisis not only on the fuel market, but also in the economy in general. High prices for gasoline are one of the reasons for a recession which the Russian economy could experience.
“At the moment, consumer prices for gasoline and diesel fuel are growing rather slowly,” Alexander Kudrin, head of the Direction of Strategic Studies in Energy of the Analytical Center under the Russian government says. “I have data from the Russian State Statistics which only begins to register growth by several kopecks. In 2012 in August-September the growth of prices for 95 RON gasoline was about 2 rubles and about 1 ruble for diesel fuel. Thus, it is not extraordinary for the season. Stock market prices for oil products rose. At the St. Petersburg Trade and Resource Exchange the growth of prices for 92 RON and 95 RON gasoline was registered in recent weeks – by 6 rubles; and it is a serious sign that consumer prices will grow as well. Experts mark several factors which influence the phenomenon. It is about closing oil refineries for remedial works, oil price growth on international markets. Urals has increased recently, mostly due to riots in Egypt. However, changes in oil prices don’t influence the Russian consumer market much. Internal factors play a bigger role.”
Speaking about dependence between stock and consumer process, Kudrin said: “Last year stock prices for 95 RON gasoline grew by 5 rubles, it led to growth of consumer gasoline prices by 1.5 rubles. As for 92 RON gasoline – stock prices grew by 3 rubles, consumer prices by 1 ruble. One of the factors of price growth is increasing excises. In 2012 in comparison with 2011 the share of excises in the price of 92 RON gasoline grew from 10.3% to 13.8%, while profit of the producing and refining sectors decreased.”
“Our gasoline price is 30-31 rubles per litre. But if we calculate it according to economic science, our gasoline price should be 17-19 rubles in comparison with the United States,” Bulat Nigmatulin, the first deputy general director of the Institute of Natural Monopoly Problems, thinks. “A fair price for gasoline in Russia shouldn’t exceed 19 rubles. The very high price, including other energy products and electricity, is strangling our economy. That is why we have no economic growth.”
