PRESS: Russian gasoline prices may exceed inflation in 2017 – min

MOSCOW, Dec 20 (PRIME) -- Russian gasoline prices in 2017 are difficult to forecast, but they should be above inflation, Energy Minister Alexander Novak said in an interview with business daily Vedomosti released Tuesday.

Oil major Lukoil CEO Vagit Alekperov said earlier in December that gasoline prices will grow by 8–12% in 2017 due to increased excise duties for fuel and gasoline. Deputy Prime Minister Arkady Dvorkovich said that gasoline prices will grow within inflation in 2017.

The calculation of the price is quite a difficult process and depends on the demand and supply of oil products, on how companies distribute margin among oil producing and refining segments, Novak said.

“We actually calculated this sum under a certain oil price and ruble rate, but the price and the rate are different now… It was expected that prices will grow above inflation this year due to excises, but they are in fact lower because we have a lot of gasoline on the market and a high competition. It is difficult to forecast prices for 2017 precisely, but I think they should be above inflation,” Novak said.

Speaking on other issues, Novak said it was difficult to foresee if Russia will be content with terms of gas transit through Ukraine after 2019.

The Energy Ministry also believes that shale oil production will partially restore, but there will not be such oversupply as in 2014–2015.

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