PRESS: Retailers warn food prices may grow due to high fuel costs

MOSCOW, Dec 18 (PRIME) -- Russian retailers have warned that food prices in the country may grow due to transportation companies’ increased costs on fuel, Kommersant business daily reported Tuesday citing a letter of associations of transport-logistics, production and trade companies to Prime Minister Dmitry Medvedev.

Fuel costs account for at least 30% of the cost of services of professional transportation organizations, and they grew by an average of 30% in November, as oil companies raised fuel prices for corporate clients. Transport companies say they can’t curb prices with such growth of production costs, and as a result the price of transport services may grow by at least 10%, which will affect retail prices of goods.

The associations asked Medvedev to hold a meeting with fuel companies to discuss the situation and terms of cooperation.

Oil firms started tightening terms for corporate clients after freezing retail and small-scale wholesale prices. Sources said that oil major Gazprom Neft introduced service fees for corporate clients, while other companies abolished discounts.

Representatives of clothes chain Sela and a large food producer said that transport companies already started warning partners about an upcoming price increase.

Dmitry Vostrikov, executive director of Rusprodsoyuz food manufacturers and suppliers association, said that food prices may grow by 1–8% depending on a category due to increased fuel costs.

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