Experts analyze dynamics of motor fuel prices

10 april 2015

Experts of the Analytical Center reviewed prices of gasoline and diesel fuel in the new issue of the Energy Bulletin. This problem is relevant for all countries, but in Russia it is also a problem due to inflation.

Rising of the prices for motor fuel is always visible, as they are in full view at all gas stations. Experts tried to answer the "eternal question": why prices fall after oil becomes cheaper in the US and Europe, while in Russia it is not. "Fuel prices can fluctuate only in conjunction with the price of crude oil, but taxes play role, experts consider. Its’ fraction of the price in the US is much smaller than in the EU (Russian taxes are approximately in the middle), so the sensitivity of retail prices to fluctuations in oil prices is much higher there." According to experts, a synchronous oscillation of the dollar prices of motor fuel in 2014-2015 across all boundaries also can be noted. Prices for A-92 and diesel fuel were slightly reduced in early 2015 in ruble terms - principles of the market and competition make their way through the Russian "specificity".

The Energy association in the EAEC and the EU is a new chapter in the lives of both unions. It is an important step for EAEC to unleash the potential, experts say. In their view, harmonization and cooperation in the power industry will contribute to economic development and competitiveness of countries. But the Energy Union of 28 EU countries is another thing. "The difference of interests and national goals is huge, said in the bulletin. A new alliance emerged and will continue to develop under the influence of a number of factors. Fears of the Eastern Europe countries about the reliability of supplies from Russia are greatly exaggerated. However, the political approach to energy trade is enhanced here, and economic rationality fades into the background. The technological revolution in the energy industry creats new opportunities and incentives, "smart networks", increased efficiency, the changing of the nature of inter-fuel competition and much more. The struggle for the empowerment of the European Commission is also of great importance: every external shock will be used as the basis for the centralization of administrative power in Brussels in the EU."

Read more in the Energy Bulletin number 22, "Dynamics of fuel prices." (in Russian)

The other issues of the energy bulletins can be found in the Publications section.