Krasnoyarsk drivers protest against the growth of gasoline prices.
Photo: Konstantin Ushakov
| Other Photos |
 |
|
 |
Fuel Stations Renounce Moratorium
// The government will deal with each of the oil companies that raise gasoline prices
Oil companies and the government do not see eye to eye on whether the moratorium on oil products’ price growth is in force or not. The government believed the agreement had been reached during the White House session on September 12. Growth of gasoline prices increased last week, reaching 1 percent per week. Gas prices caught up with inflation, and will go even further.
Russia’s Federal Statistic Service published data yesterday, according to which consumer prices on gasoline grew by 1 percent between September 11 and 18, and by 11.7 percent since the beginning of 2006. Growth of gas prices is ahead of inflation (which 0.2 percent in August, and 7.1 percent in 2006), and of the growth of oil producers’ prices (2.2 and 13.7 percent respectively).
Such data should be an unpleasant surprise for the government: de facto, the moratorium does not stop gas prices from growing, although the government still believes it is in force. Prime Minister Mikhail Fradkov met with oil producers on September 12, and supposed the agreement was reached to harden gas prices.
Minister of Economic Development and Trade Germen Gref acknowledged the government does not yet know how to act in the situation. Gref continues to think that last year’s agreement between authorities and oil companies, which steadied the market till July 2006, was permanent and applied both to retail and wholesale prices.
The government will have to make certain decisions. Federation Council adopted a resolution on September 25 that calls for fixing oil product prices for agricultural producers. Yet, if the decisions are made according to last year’s scenario, and the prices get frozen at their peak, neither agricultural producers, nor anyone else will benefit from it.
Maksim Shishkin
All the Article in Russian as of Sep. 27, 2006
|
|
|
