Russian Fun - Petrol Seesaw

Oil companies threaten Russian with shortages of automotive petrol. Since the beginning of 2010 the wholesale prices for the high-octane fuel have grown on average by 13%, in the summer the price wave will reach the retail. 

 

Experts think that the Russian Government could suppress the boom by imposing duties on export but so far it limits its efforts to antimonopoly measures only.

The story with fuel price hikes repeats in Russia every year. All sorts of different reasons for the summer price jumps are given: excise duties indexation by the Russian Government, fuel shortages due to the reconstruction of refineries, monopoly conspiracy of oil companies, global "black gold" price rises.

Experts claim that excise duties do affect prices, although insignificantly. In 2010 the rate of the excise duty on high octane petrol amounts to 3,992 roubles per ton. In 2011 it will be differentiated - for one ton of petrol of class 2 and below 4,624 roubles will have to be paid, class 3 - 4,302 roubles, class 4 and 5 - 3,773 roubles. 

According to Mikhail Turukalov, the Chief Editor of the Department for Prices and Regional Markets of the Information and Analysis Centre KORTES, the top "fine" of 600 roubles for the production of "outdated" product and the "bonus" of 200 roubles for the production of environmentally clean fuel are too insignificant to radically change the price of a ton of high-octane petrol.