Why Are Gasoline Prices Rising? Comments Made by Ivan Khomutov on the TV Channel Russia 24
In an interview televised by the Russia 24 television news programme “Vesti”, Petromarket RG General Director Ivan Khomutov was asked to comment on the increase in wholesale gasoline prices during May 2019. According to Rosstat (Federal State Statistics Service), the prices quoted by gasoline manufacturers have risen by 17.5% and as such are now heading towards retail levels, thereby reducing profits for filling station owners.
Ivan Khomutov pointed out that in the period between January and April this year, manufacturers were selling gasoline very cheaply on the domestic market. So cheap, in fact, that fuel producing refineries began to generate losses. To counter this, on April 16, the regulator weakened its recommendations to oil companies on the minimum volumes of motor fuel sales to the domestic market. This in turn removed the country's surplus of gasoline, which had previously kept wholesale prices in check, and in doing so caused prices to rise.
You can get a complete and current overview of the Russian fuel market – an analysis of the dynamics of wholesale, small-scale wholesale and retail prices for motor fuels, the export netbacks of refineries, margins of refineries, petroleum storage facilities, filling stations and refueling complexes and an analysis of the effectiveness of state regulation of the markets for motor fuels – from our weekly periodical «Fuel Market of Russia».