Some citizens of the Russian Federation sincerely do not understand why world oil prices are falling rapidly, and gasoline at gas stations is becoming more expensive. According to the average person, if oil on the stock exchanges has become three to four times cheaper, then a liter of fuel is also bound to fall in price. However, things are not as simple as they seem.
In order to find the answer to the question: “Why is oil getting cheaper on world markets, but the price of gasoline in Russia is still growing,” you need to understand at least a little about global economic processes. Where does the oil price come from and how the most complex and sometimes completely unpredictable energy market is arranged.
The reference oil is BRENT. It is from the price of a barrel of oil of this brand that major players in the energy markets, oil companies and exporting states are repelled.
The price of oil is made up of many factors. The global political environment has a great influence on its value. Today, the political situation in the world can hardly be called stable; accordingly, the price of BRENT oil is changing a lot every day. If you follow the movement of oil prices, you can wonder for a long time: how in a day oil can fall in price by almost 10%. Hence, a natural question arises: every year oil reserves are becoming less and less, it becomes more difficult to extract it, but the price for it is still steadily creeping down. It turns out that the price of this asset is formed not from market realities, but under the influence of large players on the exchange.
Companies involved in oil production are suffering colossal losses. It would seem a simple solution: just cut oil production, create a deficit. However, OPEC (the international organization of oil exporting countries) refuses to cut production. Oil exporters do not want to lose customers and reduce profits, so they have to increase production rates. Of course, this negatively affects the price of black gold. If you follow the actions of OPEC in the past, when decisions to cut oil production were made much more often and not with such a catastrophic drop in prices, it becomes clear that the main role is still played by the sanctions policy directed specifically against Russia.
If we recall the 80s of the last century, when, several years before the collapse of the USSR, oil prices were also rapidly rushing down, it becomes clear that history is repeating itself. An economic war has again been declared against Russia, and oil has again been chosen as the main weapon in this struggle.
Why gasoline is getting more expensive in Russia
Oil is traded in US dollars. This is the standard. The price of gasoline is based on the value of the dollar against the ruble. If you make some simple calculations, you will notice that in dollar terms, the price of gasoline has decreased by almost as much as the price of oil has decreased.
Monopolization of the energy market also plays an important role in the formation of gasoline prices in the Russian Federation.
This process started in 2005. The companies Gazprom and Rosneft bought out the shares of Western corporations, then the same Gazprom acquired Sibneft, and Rosneft acquired TNK-BP.
In order to make these big deals, monopoly companies need to borrow money, and who usually bears the burden of debt? That's right, consumers. So people come to gas stations, wondering why the price of gasoline always tends to rise, despite its global rapid decline.
What can be done
The situation in the world is not easy, but this does not make it easier for an ordinary consumer, who is already tired of the constant increase in prices, because it is clear that the final price of almost all goods is formed from the cost of gasoline.
In Russia, the situation is such that the burden of all costs is borne by ordinary people. The state does not introduce domestic gasoline prices, which would be much cheaper.
Supporters of the introduction of domestic gasoline prices often cite the example of a country where gasoline prices are simply ridiculous for domestic users, for example, in Venezuela, Iran, Saudi Arabia it costs mere pennies to fill a full tank. Low gasoline prices are supported by the government.
To reduce gasoline prices, the state must directly participate in this process. However, it is very difficult to freeze fuel prices all over Russia at once, and it is practically unrealistic today. To do this, it would be necessary to significantly reduce the tax on fuel, and it is 55% of the retail price of gasoline. Accordingly, revenues to the state budget would be significantly reduced.
It is vaguely believed that the situation will change in the near future and gasoline prices in Russia will begin to fall. Gasoline in the Russian Federation is constantly growing in price or is kept at the same level, regardless of world oil prices.
