Where does Russian gasoline "fly"
Is Russia waiting for a new round of fuel inflation? Now many people are concerned about this issue. Indeed, only from April 29 to May 7, 2018, according to the Federal State Statistics Service, the price of gasoline in the country increased by 1%, and diesel fuel - by 0,9%. Interestingly, the overall inflation rate during this time was only 0,1%, that is, fuel is growing in price ten times faster than other products and services.
The increase in gas prices has been observed over the past four weeks. So, in Moscow, AI-95 gasoline has risen by about 3% since the beginning of April. Large fuel companies and small gas station chains increase gas prices, that is, inflation can be called an all-Russian trend. What is the reason for this, given that Russia is one of the largest oil-producing powers in the world?
In fact, the increase in gas prices in Russia is determined by a combination of several factors. First of all, these are the features of the season. In the spring, agricultural work begins, more people begin to use personal vehicles very actively. At the same time, the rate of production of gasoline is reduced, since in winter many enterprises are closed for preventive maintenance of equipment or reduce the volume of production.
Secondly, back in November 2017, the State Duma of the Russian Federation decided on a next increase in excise taxes. Along with alcohol and tobacco, gasoline and diesel fuel also fell under the increase in excise taxes. The price of Russian gasoline and diesel fuel accounts for up to 60% of taxes, so any changes in the state tax policy upward excise taxes inevitably affect the cost of gasoline. Although the Ministry of Finance of the Russian Federation assured that an increase in excise taxes would not lead to significant changes in the price of fuel, forecasts of state financiers did not materialize.
Finally, oil prices are rising globally. Therefore, it is more profitable for domestic producers to send extracted oil outside the country than to supply Russian oil refineries. Exporting one ton of oil now brings fuel companies an additional seven thousand rubles, which would not be the case if oil was sold within Russia. Thus, there is a shortage of oil on the domestic market, which inevitably affects gasoline. It is easy to imagine the extent of the deficit on the example of the St. Petersburg International Commodity and Raw Materials Exchange, which now sells 15 thousand tons of gasoline per day, given Russia's current demand for domestic gas consumption of 50 thousand tons per day.
In order to stop rising fuel prices, the state needs to take decisive steps to reduce excise taxes on gasoline, and in addition to ensure an increase in oil supplies to the domestic market. It is interesting that the Federal Antimonopoly Service agrees with the need to reduce excise taxes, whose experts also concluded that high excise taxes are one of the main reasons for the increase in gas prices in modern Russia. But this position of the FAS does not mean that the Ministry of Finance will agree with it. The discussion of possible prospects for reducing excise taxes, as we can assume, will drag on at least until the fall of 2018. Therefore, gasoline will continue to rise in price in the foreseeable future.
The increase in gas prices has been observed over the past four weeks. So, in Moscow, AI-95 gasoline has risen by about 3% since the beginning of April. Large fuel companies and small gas station chains increase gas prices, that is, inflation can be called an all-Russian trend. What is the reason for this, given that Russia is one of the largest oil-producing powers in the world?
In fact, the increase in gas prices in Russia is determined by a combination of several factors. First of all, these are the features of the season. In the spring, agricultural work begins, more people begin to use personal vehicles very actively. At the same time, the rate of production of gasoline is reduced, since in winter many enterprises are closed for preventive maintenance of equipment or reduce the volume of production.
Secondly, back in November 2017, the State Duma of the Russian Federation decided on a next increase in excise taxes. Along with alcohol and tobacco, gasoline and diesel fuel also fell under the increase in excise taxes. The price of Russian gasoline and diesel fuel accounts for up to 60% of taxes, so any changes in the state tax policy upward excise taxes inevitably affect the cost of gasoline. Although the Ministry of Finance of the Russian Federation assured that an increase in excise taxes would not lead to significant changes in the price of fuel, forecasts of state financiers did not materialize.
Finally, oil prices are rising globally. Therefore, it is more profitable for domestic producers to send extracted oil outside the country than to supply Russian oil refineries. Exporting one ton of oil now brings fuel companies an additional seven thousand rubles, which would not be the case if oil was sold within Russia. Thus, there is a shortage of oil on the domestic market, which inevitably affects gasoline. It is easy to imagine the extent of the deficit on the example of the St. Petersburg International Commodity and Raw Materials Exchange, which now sells 15 thousand tons of gasoline per day, given Russia's current demand for domestic gas consumption of 50 thousand tons per day.
In order to stop rising fuel prices, the state needs to take decisive steps to reduce excise taxes on gasoline, and in addition to ensure an increase in oil supplies to the domestic market. It is interesting that the Federal Antimonopoly Service agrees with the need to reduce excise taxes, whose experts also concluded that high excise taxes are one of the main reasons for the increase in gas prices in modern Russia. But this position of the FAS does not mean that the Ministry of Finance will agree with it. The discussion of possible prospects for reducing excise taxes, as we can assume, will drag on at least until the fall of 2018. Therefore, gasoline will continue to rise in price in the foreseeable future.
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