Forecast Says – Petrol Climb in Russian Federation is Inevitable

There is a strong possibility for petrol prices in Russia to climb by another one fifth of its present cost. Traditionally during the summer season of holidays prices have grown smoothly and unnoticeably, but already by the end of the autumn experts predict their soaring.

According to the data of the Federal State Statistics Service, against the total picture of rising prices in the country, fuel prices have the most rapidly changing parameters. And naturally they change to the worse for the car drivers and businessmen. This sad picture is observed in 65 regions of the Russian Federation.

And especially obvious this state of things is in the Republic of Tatarstan. In Ulyanovsk and Kazan the price figures have changes by 3.4% and 3.6% respectively. These are record prices in the country. In the Far East a steady rise for fuel prices is observed including the Siberian town of Yakutsk. A minimal fall in prices is observed only in Bryansk and Gorno-Altaisk. The fall is very insignificant and is in all probability temporary. In 16 regions of Russia the week-old petrol prices still remain unchanged, at the same time during the first week of August the price on a national basis (including the capital) rose by 40 kopecks.

Bearing in mind the existing growth dynamics there is every reason that the car fuel is going to grow in price by up to 20% by December 2011. In the opinion of the president of the Russian Fuel Union Yevgeniy Arkush , the tax burden (which is the main price-forming factor) can be lowered by means of increasing the oil processing depth, which means increasing the quantity of light petrol and diesel fuel produced from one ton of crude oil. At present this parameter for the Russian Federation does not exceed 70%, while globally it makes up 90% on average, and in the USA it comprises 98%.

There if also a significant fuel deficit in some regions, most frequently absent are AI95 and AI98 gasoline standards. Such is the situation in the filling stations of Kamchatka, and it is worth mentioning that lately AI80 petrol has not been delivered at all. Governmental services on their part are trying to curb the appetite of the oil-producing concerns, the temporary introduction of protective duties have been prolonged till September 1.

It should be noted that the Federal Antimonopoly Service initiated over 70 investigations on ineligible rise of retail price for automobile fuel. A storm of rallies as a part of an all-Russian protest action against fuel injustice is expected in autumn. The action is appointed for September 27 and after it takes place it will become clear whether the civic movement of Russian citizens can improve the situation on the domestic market of oil products.

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