Prices at the pump may be also kept low by traditional agreements between the government and oil companies to place a cap on retail gasoline prices.
Photo: Nikolay Cyiganov
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Wholesale Gasoline Prices Surge
Wholesales gasoline prices went up 12 percent in April, the Russian Statistics Agency said Thursday. Analysts attribute the surge to a seasonal hike, growing oil prices and oil export duties. Retailers say that they do not expect higher prices at the pump.
Wholesale gasoline prices climbed 12.1 percent in April after a 4.3 percent growth in March, the Statistics Agency reported. Retail prices were up 0.2 percent.
Vice-President of the Moscow Fuel Association Grigory Sergeenko says that wholesale prices surged at the backdrop of low export excises and growing oil prices, which made oil companies increase exports, cutting domestic supply.
Mr. Sergeenko does not think that wholesale prices will raise prices at the pump. “Oil export duties are to be increased in June, which will make exports less lucrative and boost domestic supply,” he said.
Retail prices may be also kept low by traditional agreements between the government and oil companies to place a cap on retail gasoline prices. But if world oil prices keep the upward trend, demand on fuel in Russia will still be high as export will still be more attractive than refining. On Thursday, a barrel of Brent went up to $71, close to an all-time high.
www.kommersant.com
All the Article in Russian as of May 25, 2007
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