High prices for gasoline limit GDP growth

First Deputy General Director of the Institute of Natural Monopolies, Bulat Nigmatulin, and the Head of the Directorate for Strategic Studies in Energy of the Analytical Center of the Government of the Russian Federation, Alexander Kurdin, commented on the situation surrounding rising energy prices. Recently, the cost of motor fuel on Russian stock exchanges has risen by an average of 6-7 rubles per liter. Such a sharp increase has had no effect on retail prices yet. However, there is little doubt that prices for diesel fuel and gasoline for domestic gas stations will soon increase as well. Higher prices for gasoline and diesel fuel have already been registered in 50 subjects of the Russian Federation. Experts call the situation critical. Moreover, it is critical not only for the fuel market of the country, but for the economy in general. High prices of gasoline, according to experts, are a major cause of a recession that the Russian economy could experience. Over the last month the wholesale price of motor fuel in Russia increased by 20-30%. In particular, gasoline and diesel fuel rose significantly (by 6-7 rubles) at the St. Petersburg Commodity Exchange. According to experts, the growth in fuel prices is somewhat seasonal. According to Alexander Kurdin, almost every year in July and August the prices rise. Among the major influencing factors are the global rise in oil prices, a pause to repair the refineries and increasing excise taxes.