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Gasoline has risen in price by 50% in six months: what is happening with fuel prices in Russia

Date: June 18, 2024 Time: 11:56:14

Gasoline prices in Russia increased by more than half.

Photo: Oleg UKLADOV

Not very good news. In Russia, gasoline stock prices are rising. In addition, in six months they increased by more than half. These are the data from the Saint Petersburg International Commodity Exchange (SPIMEX). The price of AI-92 gasoline was 57.7 thousand rubles per ton according to the results of the negotiation on June 30. AI-95 gasoline rose in price to 64.8 thousand a ton (54%). Analysts say that the prices of this type of gasoline have already broken records on more than one occasion, updating their previous figures.

What’s happening? First, the volume of gasoline offers decreased, according to the stock market, by 10.9%.

– Oil refineries went for annual repairs. That is, they were temporarily stopped, due to which the offers on the exchange decreased, explained Igor Yushkov, a leading analyst at the National Fund for Energy Security, an expert at the Financial University of the Government of the Russian Federation.

Second, there is a need to separate Big Oil’s gasoline prices from other exchange gasoline buyers.

– Basically, large vertically integrated companies that have their own production, processing and trading of oil sell fuel on the stock exchange, – continues Igor Yushkov. “They mainly supply themselves and their gas stations with fuel, and sell the surplus on the stock market. So-called independent service stations buy fuel there. And it’s bad for them. They have to raise the sale price to the final consumer or generate losses. If they raise the price, there is a risk that the consumer will travel to a nearby gas station of a vertically integrated company, where the price is lower.

Third, last year the State contained the prices of gasoline and other fuels.

– As a result, the price of them rose below the level of inflation, – says the expert Yushkov. – And companies are now trying to make up for inflation last year, because they received less money than they should have received at the end of the year.

WHATS NEXT?

Actually nothing new. Fluctuations in prices on the stock market will continue, but in the near future there will be a pause.

– Now the regulator intervened in the situation (Federal Antimonopoly Service, – Ed.), – explained Igor Yushkov. – Most likely, large companies will voluntarily provide additional volumes to the exchange in order to saturate the exchange and balance the price. But overall, fuel prices will continue to rise and another jump is expected in the fall. That’s when the state plans to reduce payments to oil workers by 50% as part of the reverse excise tax. With these payments, the government, as a rule, regulates gasoline prices so that they do not increase for the final consumer. So, starting in the fall, these offsets will be halved in order to force oil companies to profit on the stock market and raise prices there.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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