international magazine
09 / 2005


SOARING PRICES AFFECT THE ECONOMY
Russia's gasoline prices growing yet again



«Emergency» is the only proper word for the state of Russia's motor fuels market. Gasoline price was steady edging upwards ever since January this year, only to jump by 7% on average in first half of September. The oil companies say price hike is due to skyrocketing barrel — the trend backfires on oil producers as they have more taxes to pay due to peculiarities of Russia's Tax Code. The severity of the problem forced Russia's authorities to set up emergency meetings trying to solve the problem. Still, the parliament and the government have neither significant leverage nor real-time influence on the market. Until tax burden is lifted from Russia's oil companies, motor fuel prices will keep on growing, say the experts.