In Russia, the idea of linking gasoline prices to the average wage growth is being discussed. The Ministry of Energy may abandon attempts to control gasoline and diesel prices within consumer inflation. This issue has been submitted for approval to various government agencies.
The idea belongs to the Russian Fuel Union (RFU), which Deputy Prime Minister Alexander Novak instructed to develop this proposal. The new composite index — a statistical indicator that combines data from several indicators into one averaged value — will take into account factors such as the dynamics of the minimum and average wage, tax burden, tariffs for housing and communal services and transport, as well as expenses for the renewal of fixed assets.
Next year, if the proposal is adopted, retail fuel prices may increase significantly more than within the current inflation. For example, a liter of gasoline in Moscow may rise to 65.5 rubles instead of 64.5 rubles.
It is important to note that the new indices will serve only as a guideline, as there are no legislative restrictions on price increases. This may activate inspections of gas stations, as well as cause concern among consumers, experts say. Over the past five years, fuel prices only in 2020 and 2022 corresponded to the level of consumer inflation.
Some experts, including Sergey Frolov, Managing Partner at NEFT Research, consider the proposed measures reasonable, although belated. Frolov notes the absurdity of the situation when market fuel prices on the exchange differ sharply from prices at gas stations, which are kept within inflation.
Read more on the topic:
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- National Automobile Union proposed that the FAS regulate fuel prices
- Independent gas stations in Russia are under threat of closure
