After the New Year, gasoline in Russia can rise in price by 35%

Few car owners in Russia paid attention to the details of the 2023 federal budget, which was promptly passed by the authorities without noise and dust. Therefore, the results of its implementation will probably come as an extremely unpleasant surprise to most of us. The fact is that from January 1, 2023, oil companies will pay much more to the budget, since in the new year the tax on mineral extraction will rise sharply for them – by 1.3 times. In other words, for every ton of oil pumped out of the ground, the budget will cost 30% more. Accordingly, prices will rise along the entire economic “chain” between an oil well and a filling nozzle at a gas station.

In addition, from 1 January 2023, the excise duty on motor fuel will increase by 4%. For gasoline – from 13,793 rubles to 14,345 rubles per ton, and for diesel fuel – from 9,556 rubles to 9,938 rubles per ton. We also recall that next year the government will apparently continue to reduce payments to oil workers as part of the so-called damper – an economic mechanism that limits domestic fuel prices. In summary, all these factors can lead to a large-scale price increase for filling stations: more than 35%.

Characteristically, against the background of this more than transparent “arithmetic”, officials of the “profile” ministries and departments claim in the media that the expected increase in the cost of motor fuel in 2023 will take place “in the context of inflation”. Whether that is the case will become completely clear as early as January-February next year.

Few car owners in Russia paid attention to the details of the 2023 federal budget, which was promptly passed by the authorities without noise and dust. Therefore, the results of its implementation will probably come as an extremely unpleasant surprise to most of us. The fact is that from January 1, 2023, oil companies will pay much more to the budget, since in the new year the tax on mineral extraction will rise sharply for them – by 1.3 times. In other words, for every ton of oil pumped out of the ground, the budget will cost 30% more. Accordingly, prices will rise along the entire economic “chain” between an oil well and a filling nozzle at a gas station.

In addition, from 1 January 2023, the excise duty on motor fuel will increase by 4%. For gasoline – from 13,793 rubles to 14,345 rubles per ton, and for diesel fuel – from 9,556 rubles to 9,938 rubles per ton. We also recall that next year the government will apparently continue to reduce payments to oil workers as part of the so-called damper – an economic mechanism that limits domestic fuel prices. In summary, all these factors can lead to a large-scale price increase for filling stations: more than 35%.

Characteristically, against the background of this more than transparent “arithmetic”, officials of the “profile” ministries and departments claim in the media that the expected increase in the cost of motor fuel in 2023 will take place “in the context of inflation”. Whether that is the case will become completely clear as early as January-February next year.