FX.co ★ Petrol prices boosting in Russia

The Russian Federation government expresses regret that citizens are “safe” from petroleum price abatement in the short term. In his speech, Prime Minister Dmitry Medvedev appealed to the Russians not to rely on a decrease in the petrol prices; he also assigned the law enforcement authorities to turn the careful attention to companies overpricing petrol. “I am not going to promise you the Pastures of Heaven. Unfortunately, fuel price increase is the true-to-life economic phenomenon,” the Prime Minister brought the trend into focus on Mashuk 2013. Besides, he added: “If unreasonable petrol price growth takes place anywhere, then the law enforcement authorities must follow up and slap on the wrist. In return, the population should also take notice of it and inform of a groundless price surge.” The Russian government’s leader complained that the state authority is unable to “restrain oil tycoons” despite the fact that CEOs of oil producing companies are frequently “called on the carpet” to the Kremlin and they are clearly brought home the government’s message. However, talking is not enough when the world market prices work out at $105 – 110 per barrel. Amid such a state of affairs, the price boost is a logical response. In the eyes of Medvedev, it is necessary to provide conditions for alternative fuel advance; then the competition will tame petrol producer prices. Besides, the reason for rising prices is the lack of refined hydrocarbons after shrinking supplies from Belarus. If the Custom Union partner does not increase the exports, Russia is likely to face petrol shortage.