The rise in gasoline prices in Russia began in the spring of 2018, and the cost of fuel is still at a high level. This fact worries both car owners and large oil companies, which are forced to reorient supplies to the domestic market. The price of gasoline has grown by 8.7% since the beginning of the year, and according to the Independent Fuel Union, this is not the limit.
Reasons for the record growth
The profitability of fuel always depends on the foreign economic policy of the state, as well as on the state of the economy in the country itself. The price of gasoline is formed based on a number of factors:
- oil price on the world market
- excise rate
- amount of taxes and fees
- costs for the extraction and transportation of raw materials
- relations with foreign states
A spike in prices occurs when multiple factors kick in at the same time. Thus, the fall of the ruble on the world market and the increase in the cost of oil refining led to an inevitable increase in the cost of fuel. The growth of the dollar instantly leads to inflation, and this factor cannot be circumvented. The head of Rosneft notes that in recent years, many factories have been closed for repairs, which has increased the growth of transportation costs.
Russian companies have received an additional burden - an increase in oil refining costs and the need to curb price fluctuations at filling stations. Igor Sechin admits that these factors lead to a decrease in the profitability of the fuel business and independent gas stations can simply lie. The Federal Antimonopoly Service also considers the sharp decline in gasoline production to be one of the main reasons for the jump in prices. However, the repair work was carried out as planned, and one should not expect a prolonged shortage of gasoline.
The situation is aggravated by a decrease in the volume of mining. The problem dates back to 2014, when, due to the global crisis, oil tycoons reduced their share of investment in exploration. The growing demand for oil from foreign countries is forcing large fuel companies to export the bulk of their products due to increased profitability. One cannot fail to note an increase in demand for renewable energy sources, which, according to analysts' forecasts, will continue to compete with oil.
Forecasts for the future
Vladimir Putin, together with the Cabinet of Ministers, developed restraining measures that are designed to stabilize gasoline prices and prevent fuel shortages on the domestic market. It was decided to switch to manual regulation of gasoline prices. The government agreed with the heads of large Russian oil companies on quotas for the supply of fuel to the domestic market and reduced the cost of excise taxes. An increase in export duties is considered as a preventive measure if the policy of price increases continues.
At that time, the cost of gasoline, although it was fixed at the "summer" level, but it has not yet been possible to achieve its fall. A simultaneous decrease in the income of Russians has led to a decrease in the number of car owners. I would like to believe that government measures will help avoid another crisis and bring gasoline prices back to an adequate level.
