What is the reason for the increase in the price of gasoline? Will petrol prices go up in 2017?

2024 Author: Erin Ralphs | [email protected]. Last modified: 2024-02-19 11:42

The rise in the price of gasoline occurs constantly in the difficult conditions of the Russian economy. Often the layman cannot find an explanation of what the next price jump depends on. But this process is continuous and there is a constant increase in performance. We will try to consider why this is happening and whether it is possible to somehow influence the next increase.

Is there a connection with oil?

Experts say that the rise in gasoline prices has nothing to do with oil prices. But according to the state of the market, one can notice some reverse trend: when oil becomes cheaper, gasoline immediately rises, and a jump in oil prices is accompanied by a decrease in the cost of gasoline. However, there are many nuances here that clearly indicate the absence of interdependent relationships.

The increase in the price of gasoline directly depends on the actions of the heads of leading companies and government officials. This undoubted fact was recently reaffirmed when the president of the oil company, Alekperov, entered into a lengthy skirmish with Russia's anti-monopolists. Vagit Yusufovich openly announced an increase in the price tag to 12% in 2017, because excise rates have increased.

According to the leaders of the Antimonopoly Agency (FAS), Alekperov's statement is provocative and contributes to an imbalance in the domestic fuel sales market. The expected level of price growth was much lower. But according to the results of price hikes at the beginning of the year, there were already figures that exceeded the forecast.

Reasons for tariff increases

So, the rise in price of gasoline is constantly happening at the suggestion of government agencies and leading companies in the country. Oil here has a rather third-party value. Prices are affected by:

• Cost of excises.
• The level of business taxation.
• Expenses of enterprises involved in oil refining and gasoline production.
• Inflation indicators.

The main increase in the price of gasoline in 2015 was due to the wrong policy of the government. This is easy to see by comparing the market price of gasoline. Take, for example, a product with a 95 octane rating - one liter costs 60% more just because of taxes. The rest of the cheats are carried out by producers and miners, the numbers are staggering.

The increase in the price of gasoline in Russia will continue to occur like an avalanche due to the barbaric actions of politicians. Thus, according to the results of the study of the reasons for the rise in prices, it can be concluded that the main contribution to the increase in the cost of gasoline is made by the internal policy of taxation.

Why is that?

The rise in gasoline prices is a change in taxation policy in the recent past. Wasthe entire system of tariff calculation has been changed. Oil exports require conditions where there are high taxes on mining and low customs duties.

It is more profitable for the state to sell oil over the "hill" than to seek profit on the domestic market. The latter benefit can only come from the processing of oil into gasoline and its subsequent sale. The authorities follow the simple path of enrichment without dealing with internal problems.

Therefore, the production of gasoline in Russia began to fall, oil exports increased excessively. Many oilmen are already willing to mothball distilleries due to lack of profitability. It is practically impossible to modernize existing companies in the current conditions.

Innovations

Will the price of gasoline rise? This can be understood after the expected statements of politicians. A new scheme of tax burden for oilmen is expected. As planned by the authorities, the situation should change for the better for drivers.

The basis of the new taxation scheme is the introduction of an added tax, which again will fall on the shoulders of motorists. Replacing one tax with another payment is unlikely to change the situation, experts say. Also dangerous is the length of this transition, during which gasoline prices may change several times.

There was no reason to doubt

Specialists agree that the reasons for the rise in price of gasoline by the introduction of another tax are not ruled out. Modifiable schemetaxation only makes a screen that closes the eyes of motorists on the main problem of rising fuel prices. Moreover, all innovations require material costs, which will undoubtedly affect the cost.

At best, the price of gasoline will not change at all as a result of micro-reforms. The experts seem to be more interested in the government's proposal to introduce a so-called flexible excise tax to regulate the market. In this case, the cost can be significantly reduced.

What will happen?

According to the results of research, it is possible to answer the question of what is the reason for the increase in the price of gasoline. Experts identify common and minor causes:

• The cost of gasoline includes scheduled repairs at refineries.
• Seasonal increase in demand for gasoline leads to higher prices.
• There is a dependence on the number of gas station owners in the region. Small stations are almost impossible to control for compliance with the pricing policy.

The emergence of high gasoline prices directly affects the change in the cost of goods and services in all sectors. The consumer pays the costs of the government's wrong policy. All of these conditions can be controlled and very successfully. Only the decisions are very late due to the legislative process.

In the current situation, gasoline prices are rising much faster compared to last year. However, there is nothing wrong with that at the moment. The current changes were predicted by analysts, and appropriate measures have been taken.

Evaluation of what is happening

Price increasegasoline since the beginning of the year has already led to an increase in the cost of groceries in stores. The Russians began to save on everyday needs and more selective approach to the purchase of expensive goods. The next rise in the price of gasoline by 35 kopecks by the summer is expected, partly this has already happened. According to the figures, by the end of the year at this pace, there will be huge price increases everywhere.

The situation is saved by small producers of products, branded versions of goods are not particularly in demand. However, from the increase in the cost of gasoline, the entire logistics of the country becomes more expensive. According to studies, a 1% increase in the cost of a liter leads to a 4% increase in the cost of living, as each owner of the company tries to compensate for his expenses and take additional advantage of the current situation.

What can be said about the dispersion of the price level?

Developed regions do not suffer as much from the increase in the cost of gasoline. This is due to the developed logistics system, ready for the next stress. The more remote the area, the fewer gasoline producers are located there. Accordingly, the demand is higher. And where there is a huge demand for products, prices always rise.

The government is obliged to pay attention to the emerging situation in the regions and to pursue an antimonopoly policy. A timely response will help change the cost of gasoline throughout the country as a whole. The market never stands still. The main thing is to set it in the right direction, and then sharp price spikes can be contained.

Forecast for 2015 in due timeassumed the cost of AI-95, for example, in the region of 36.2 rubles. per litre. Unexpected was the price decrease in the third decade of January by 0.1%. But such indicators were temporary, leaving the average cost at around 34.5 rubles. By the end of the year, the rise in price led to the expected results - up to 36.3 rubles. per litre. Unfortunately, the upward trend in the price of gasoline continues today.

Analysts predict price growth by the same 2.5%. Accordingly, we can draw a parallel and draw conclusions about the rise in prices for all types of goods and services in the country. The situation will not change until politicians who are interested in improving the living standards of the population take up the problem.