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And here they are: the authorities are selectively ‘strangling’ fuel prices

  • November 17, 2023
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Comparing facts that seem to lie on the surface and drawing adequate conclusions based on them is an art that is not accessible to everyone. But the events

And here they are: the authorities are selectively ‘strangling’ fuel prices
Comparing facts that seem to lie on the surface and drawing adequate conclusions based on them is an art that is not accessible to everyone. But the events that have occurred in recent months on the Russian motor fuel market are able to develop this skill even in the simplest and gullible motorist.

According to the press service of the Russian government, Deputy Prime Minister Alexander Novak “Fuel and Energy” held a meeting on the situation on the domestic market for petroleum products with the management of oil companies, representatives of the Ministry of Energy, the Ministry of Finance, the Federal Antimonopoly Service, the Ministry of Agriculture and the St. Petersburg International Commodity Exchange. Such events with the participation of high-ranking Russian officials occur quite regularly – after the rapid increase in prices on the domestic Russian fuel market that occurred in the summer of this year.

A meeting was held on November 16, and today, on the 17th, a sharp drop in fuel prices already occurred on the St. Petersburg Stock Exchange. Wholesale gasoline fell by one and a half percent in price – to 51,142 rubles per ton of AI-92 and 54,215 rubles per ton of AI-95. Diesel fuel fell by almost 4% in price – to 60,000 rubles. Of course, no one reported to the general public about the content of Novak’s conversation.

However, the connection between this and the sharp decline in wholesale fuel prices is striking. This clearly illustrates the fact that the authorities have every opportunity to ‘steer’ in the most direct way, a bit like the market prices for fuel in the country. Meanwhile, motor fuel prices in Russia rose enchantingly throughout the summer and early autumn, eventually reaching stock market levels of more than 70,000 rubles per tonne.

And here a reasonable question arises: what prevented then, in the summer, a meeting or two with Novak – with the same decisions as on November 16? Look, they would have stopped the wave of price increases. Without the use of ‘heavy artillery’ in the form of a complete ban on the export of petroleum products from Russia. Instead, the departments involved watched the process phlegmatically all summer, only occasionally commenting on the situation in the spirit that everything was under control and the market would regulate everything. Only the Minister of Agriculture could not hold back and made panicky statements about the growing shortage of fuel on the domestic market and the real threat of no harvest due to the disappearance of diesel fuel from oil depots.

It is also interesting that yesterday’s meeting with Novak has driven down stock prices for almost all types of motor fuels. Except for one thing: winter diesel. On the contrary, the price rose by half a percent and almost reached the psychologically symbolic figure of 70,000 rubles/ton. Taking into account the revealed full controllability of the Russian oil products market by the authorities, we can conclude that today the government is not at all opposed to oil workers earning an extra “cent” from the owners of commercial equipment, almost all of whom runs on heavy fuel. That ultimately amounts to the entire population of the country, on whom the higher costs of fuel carriers will inevitably be passed on.

photo AutoVzglyad

According to the press service of the Russian government, Deputy Prime Minister Alexander Novak “Fuel and Energy” held a meeting on the situation on the domestic market for petroleum products with the management of oil companies, representatives of the Ministry of Energy, the Ministry of Finance, the Federal Antimonopoly Service, the Ministry of Agriculture and the St. Petersburg International Commodity Exchange. Such events with the participation of high-ranking Russian officials occur quite regularly – after the rapid increase in prices on the domestic Russian fuel market that occurred in the summer of this year.

A meeting was held on November 16, and today, on the 17th, a sharp drop in fuel prices already occurred on the St. Petersburg Stock Exchange. Wholesale gasoline fell by one and a half percent in price – to 51,142 rubles per ton of AI-92 and 54,215 rubles per ton of AI-95. Diesel fuel fell by almost 4% in price – to 60,000 rubles. Of course, no one reported to the general public about the content of Novak’s conversation.

However, the connection between this and the sharp decline in wholesale fuel prices is striking. This clearly illustrates the fact that the authorities have every opportunity to ‘steer’ in the most direct way, a bit like the market prices for fuel in the country. Meanwhile, motor fuel prices in Russia rose enchantingly throughout the summer and early autumn, eventually reaching stock market levels of more than 70,000 rubles per tonne.

And here a reasonable question arises: what prevented then, in the summer, a meeting or two with Novak – with the same decisions as on November 16? Look, they would have stopped the wave of price increases. Without the use of ‘heavy artillery’ in the form of a complete ban on the export of petroleum products from Russia. Instead, the departments involved watched the process phlegmatically all summer, only occasionally commenting on the situation in the spirit that everything was under control and the market would regulate everything. Only the Minister of Agriculture could not restrain himself and issued panic speeches about the growing shortage of fuel on the domestic market and the real threat of running out of crops due to the disappearance of diesel fuel from oil depots.

It is also interesting that yesterday’s meeting with Novak has driven down stock prices for almost all types of motor fuels. Except for one thing: winter diesel. On the contrary, the price rose by half a percent and almost reached the psychologically symbolic figure of 70,000 rubles/ton. Taking into account the revealed full controllability of the Russian oil products market by the authorities, we can conclude that today the government is not at all opposed to oil workers earning an extra “cent” from the owners of commercial equipment, almost all of whom runs on heavy fuel. That ultimately amounts to the entire population of the country, on whom the higher costs of fuel carriers will inevitably be passed on.

Source: Avto Vzglyad

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