Ministry of Energy: the growth of wholesale prices for gasoline will not significantly affect retail

The increase in wholesale prices for gasoline will not have a significant impact on the cost of fuel at gas stations, the press service of the Ministry of Energy reported.

The agency explained that the increase in gasoline prices in May-June is associated with the first wave of planned repairs at the refinery, but production is already gradually stabilizing as these works are completed.

“At the same time, a margin is maintained in the retail segment, which allows keeping gasoline prices at gas stations within inflation limits. Therefore, the growth of wholesale prices will not have a significant impact on changes in retail prices,” the Ministry of Energy noted.

At the same time, the ministry drew attention to the low level of wholesale gasoline prices in 2022, caused by a decrease in exports. Now the situation is being leveled “taking into account the interests of both gasoline producers and its buyers.”

Demand in the domestic market is fully met, the Ministry of Energy stressed: in the second half of the month, gasoline production is 124,000 tons per day, which is 3.2% higher than in July last year.

“The Ministry of Energy keeps the situation under control. In addition, oil companies are fulfilling the recommendations of the headquarters of the Ministry of Energy to increase shipments to the domestic market by reducing exports,” the ministry concluded.

Rosstat today published data on the dynamics of gasoline prices in May, from which it follows that the producer price index increased compared to April by 18.7% at once, and in annual terms – by 47.8%. Gasoline has risen in price in almost all regions of the Russian Federation engaged in the production of gasoline, Rosstat noted. Prices for it grew the most in Perm Territory (+28.0%), Moscow (+27.4%), Nizhny Novgorod Region (+24.9%), Komi (+24.8%) and Kemerovo Region (24. 5%).

As Vedomosti wrote earlier in mid-June, wholesale gasoline prices, which have been growing since April, have renewed their historical maximum. At the same time, the volume of oil refining grew in January-April by 3.2% yoy to 93.76 million tons. On June 14, Energy Minister Nikolai Shulginov said that refining had increased by about 4.6% since the beginning of the year.

A representative of the FAS then told Vedomosti that the agency sent nine oil companies a demand to increase sales of gasoline on the stock exchange. According to the FAS, the decrease in sales from January to May 2023 amounted to 7.9%, and there was an unsatisfied demand for AI-92 and AI-95 in the domestic market. In this regard, there is a significant change in wholesale prices, said the representative of the FAS.