Gas prices for gasoline and diesel fuel will not exceed the rate of inflation, according to Alexander Novak.
The Russian government and the Bank of Russia have provided some insights into the country's economic outlook for the remainder of 2024, particularly focusing on gasoline prices and inflation rates.
In a recent statement, the Deputy Prime Minister of an unspecified country assured the public that prices this year will be indexed no higher than inflation overall. This comes as a relief to many, considering the volatile economic climate.
On the inflation front, Andrei Ganin, Director of the Department of Monetary Policy at the Bank of Russia, has forecasted an expected inflation rate for Russia at the end of 2024 to be around 5%. However, Ganin has also warned that inflation is expected to exceed the Central Bank's forecast of 8-8.5%. He further expects inflation to be 9.6-9.8% by the end of the year.
Gasoline prices have been a topic of interest as well. On average, AI-92 gasoline cost 54.99 rubles per liter on December 16, with AI-95 priced at 60.19 rubles, AI-98 at 82.15 rubles, and diesel at 69.61 rubles. From December 10 to 16, the growth of gasoline prices slowed to 0.3%, and diesel fuel prices remained virtually unchanged from the previous week at 0.4%.
The Russian government has implemented and lifted various restrictions on gasoline exports throughout 2024. Initially, a temporary ban on gasoline exports was implemented from March 1, 2024, due to saturation of the domestic market. The ban was suspended from May 20 to the end of July 2024, only to be reintroduced in mid-August 2024 and remaining in effect until the end of 2024.
Despite these restrictions, the Russian government has lifted the ban on gasoline exports for some suppliers at the end of November 2024. However, the ban remains in place for other suppliers until the end of January 2025. The Deputy Prime Minister has confirmed that the domestic market is fully supplied with both gasoline and diesel fuel.
From January to November 2024, gasoline prices increased by 9.65%. This increase is significant, but the recent slowdown in price growth offers some hope for stability in the coming months.
In summary, while the Russian economy faces challenges, both the government and the Bank of Russia are taking steps to manage inflation and ensure the stability of the fuel market. The public can expect prices to remain relatively indexed to inflation, and the government is working to maintain a sufficient supply of gasoline and diesel fuel in the domestic market.
The Ministry of Finance is working closely with the government to manage the financial implications of the volatile gasoline prices and rising inflation rates in the business sector.
In light of the anticipated high inflation rate predicted by Andrei Ganin, strategic measures are being considered to ensure the stability of the Russian economy and mitigate the potential impact on businesses and citizens.
