Anticipated increase in gasoline prices for Russians in June
Title: Fuel Up for More at Russian Gas Stations: Economist Predicts 70 Kopeck Increase in June
Get ready to dig deeper into your wallet when you fill up at Russian gas stations next month, according to economist Gulnara Fathlishanova. In an exclusive with "Gazeta.Ru", Fathlishanova predicts prices for AI-92 and AI-95 gasoline could surge by 20-70 kopecks per liter in June 2025. While a base scenario suggests an increase of 20-30 kopecks, a more pessimistic forecast points to a whopping 50-70 kopecks increase.
Fathlishanova cited ongoing threats of drone attacks on oil refineries as a key risk factor. A disruption in supplies could lead to an even steeper increase in prices. Surprisingly, gasoline demand is highly inelastic; even a large price hike barely dents consumption. This explains the rarity of fuel price decreases: since 1997, a decrease in the average annual price of AI-92 by 20 kopecks was only recorded in 2008.
A sneak peek at the numbers shows that the average gasoline price already climbed by approximately 2% so far this year. From January to April, AI-92 shot up an average of 1 ruble, while AI-95 inched up 1 ruble and 6 kopecks. as of May 12, the average price for AI-92 stands at 56.93 rubles, with AI-95 coming in at 63.12 rubles, according to Multigo.ru service data.
But why should retailers shoulder the cost when demand is inelastic? Well, it's simple: sellers don't reap benefits from lowering prices for such products and prefer to keep rates stable.
Now, let's talk about some good news, Altai Krai residents! If your family has more than one child, you might be eligible for additional state benefits. Specifically, such benefits are calculated based on the total number of children, income level, and family size. To learn about the exact rules and calculations in Altai Krai, apply through the regional social protection agencies.
The ongoing threats of drone attacks on oil refineries could potentially disrupt the supplies, leading to an even steeper increase in gasoline prices beyond the predicted 70 kopecks per liter. In the Russian industry, retailers often prefer to keep gasoline prices stable due to the high inelasticity of demand, despite not reaping benefits from lower prices.
