Petrol prices go up – faster than salaries grow

Regardless the fact that on 1st December petrol prices have increased for the 11th time in 2011, the price of gasoline has not yet reached the pre-crisis level (USD 1.1-1.2 per liter). Therefore further price increases will follow.

On 3 December concern “Belneftekhim” announced the following, the 11th since the beginning of 2011, petrol price increase. Prices have increased by 10% on average.

Petrol prices on the domestic market do not cover the cost of its production: refineries are operating at a loss, while export of petroleum products does not compensate for the cost of raw materials and losses on the domestic market. Moreover, the price of gasoline is still significantly lower than in the neighboring countries, which increases the demand for cheaper fuel on the domestic market. In the meanwhile, a common market with Russia requires adjustment of prices and the principles of the pricing policy.