Fuel prices to surge by 8% in the year 2024
In the past year, fuel prices in Russia have seen a significant increase. According to data from various sources, the average cost of gasoline and diesel in December 2023 was 60.57 rubles per liter for gasoline and 69.88 rubles per liter for diesel. Compared to November, prices rose by 1.4%, and year-over-year, gasoline prices increased by 11.1% and diesel by 8.8%.
The Republic of Adygea and Yaroslavl Oblast experienced the highest increases in gasoline prices in December 2023, with a 2% rise each. On the other hand, prices decreased in Tuva and Komi by 0.9% and 0.3% respectively during the same period.
The most expensive fuel was found in the Sakhalin region, with gasoline priced at 76.39 rubles per liter and diesel at 92.89 rubles per liter. Conversely, the cheapest diesel was in Dagestan (62.93 rubles per liter), and the cheapest gasoline was in Tatarstan (54.95 rubles per liter).
These price fluctuations have been attributed to various factors, including refinery production stoppages due to drone strikes, export restrictions, high domestic demand, and supply constraints.
Russian Deputy Prime Minister Alexander Novak has stated that the increase in gasoline and diesel prices in 2024 would not exceed inflation. In 2023, the inflation rate was not provided, but in 2024, it accelerated to 9.52%, according to Rosstat.
Novak also noted that the domestic market is "fully supplied" with both gasoline and diesel fuel. However, he acknowledged the consideration of a gasoline export ban to stabilize domestic fuel prices, depending on market trends.
As of December 2024, the ratio of consumer gasoline prices to producer prices was 2.5 times. This is a decrease from the 3.1 times ratio recorded in 2023. The cost of gasoline grade A-95 increased by 7.2% in 2024, while A-92 increased by 6.9%. The cost of gasoline grade A-98 and above increased by 13.8%.
The evolving situation in the fuel market necessitates a cautious approach to balancing export controls and domestic market stability amid rising fuel prices. As the new year approaches, consumers and producers alike will continue to monitor fuel prices closely.
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The industry experts predict potential impacts of these price dynamics on the overall finance sector, as Russia's energy market constitutes a significant portion of its economy.
Given the Deputy Prime Minister's statement, a potential increase in finance capital may be allocated towards the energy sector to combat the rising fuel prices in 2024, in accordance with the domestic market's requirements.
