23 January 2018, Tuesday, 3:10

Petrol prices to go up 10%


The government is discussing the question of raising petrol prices.

The decision is expected to be taken in the near future, Belorusy I Rynok writes.

Belneftekhim company made several proposals to the government to raise fuel prices. But the government delayed the issue (perhaps, one of the reasons was the ice hockey world championship in Minsk). As a result, prices of fuel have been remaining the same for almost six months in spite of changes in the national currency rate and a poor financial state of Belarusian oil refineries.

In general, working conditions for the Belarusian oil refineries have improved this year due to agreements with Russia on oil supplies. The situation became more predictable, Unlike last year, when contracts were signed every quarter, this year's contact was signed for a period of six months and later for the whole year. It allowed building relations with suppliers for a long period, which has a positive impact on the work of the Belarusian refineries.

At the same time, foreign market conditions, domestic tax and monetary police do not allow the Belarusian oil refineries to work with high profitability. The Belarusian refineries have a profit margin of 5-7%.

According to the data available, the issue of increasing petrol and diesel fuel prices is already on the agenda. Car fuel prices are expected to grow at least 5% in the near future. At the same time, the question of raising the excise duty on car fuel is being discussed. If the decision is taken, the total growth may reach 10%.

The relevant government agencies discussed the possibility of increasing the duty by 5% this spring. If the decision had been made, it would have raised fuel price by 60-100 rubles. Several variants of increasing the excise duty appeared in the process of discussion. The final decision is supposed to be taken depending on the fiscal situation and the economic state of the Belarusian oil refineries.

However, in accordance with law No. 96-3 of December 31, 2013, excise duties on car and diesel fuel will be set in 2014 for a period of one year depending on the emission class instead of the octane number. According to estimates, excise duties on car fuel will rise by an average of 14.5% this year.

The latest increase in fuel prices in Belarus was on December 28, 2013. Belneftekhim explained the 2% growth by the need to “partially compensate for the increased rates of excise duties on sub-excise oil products from January 1, 2014.”

Belneftekhim raised fuel prices 5 times in 2013 explaining the step by a partial compensation for the increase in excise duty rates. As a result, the price of Normal-80 rose 17%, AI-92 – 23.7-26.6%, diesel fuel – 25.5%, AI-95 – 26.7%.