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POSTED | 8:09 AM | 13-11-2014

Russian petrol prices may grow above inflation

The price of petrol, which has grown steadily in Russia since the beginning of the year, is expected to rise steeply in 2015 as new duties and an imbalance of supply and demand take their toll, putting further pressure on the already staggering economy.

Since the beginning of the year the prices for petrol at fueling stations in Russia have grown by 8 to 10 percent, depending on the type of fuel, which was slightly higher than the rate of inflation, which is at around 8 percent. Currently, regular unleaded in Moscow on average costs 33 rubles per liter (70 cents).

But the growth of wholesale prices was much higher, constituting on average as much as 30 percent since the beginning of the year, according to the state statistics agency Rosstat.

The wholesale price hike was caused by excessive export of fuel between the end of last year and the beginning of this year, said Mikhail Turukalov, the head of business development at Commodities Markets Analysis, a Moscow-based commodities trade consultancy.

“A series of fires that broke out at some of Russian oil refineries in February and March, combined with a large-scale modernization of others, has only made things worse, pushing the spot prices for gasoline even higher,” Turukalov said.

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