Gasoline prices decline in Russia
Retail prices of the regular (Ai-92) and the premium (Ai-95) gasoline declined in a number of Russian regions last week, according to data provided by the Central Dispatching Department of Fuel Energy Complex.
It was the first decline in gasoline prices since August 2018.
In the Central District, in the North Caucasus and in the south of Russia - gasoline prices declined by 0.1-0,2 ruble last week. In the Saratov region, gasoline price declined by 0.07 ruble, in the Arkhangelsk region and Karelia - by 0.03-0,06 ruble.
The price of winter diesel fuel was generally stable. In the Bryansk and Saratov regions, it declined by 0.05 ruble, in the Lipetsk region - by 0.04 ruble, in Tyva - increased by 1 ruble, Interfax reports.
Average exchange prices of the Ai-92 and Ai-95 regular gasoline declined by 0.01 ruble to 42.29 rubles per liter and 45.24 rubles per liter. The average diesel fuel price stayed at the level of 47.22 rubles a liter.
The executive vice-president of NewTech Services, professor of the Gubkin Russian State University of Oil and Gas, Valery Bessel, speaking to Vestnik Kavkaza, noted that a week-long price decline reflects a short-term overproduction of gasoline and will not last long. "There is a seasonal factor, there was an excess of supply over demand in the market. The demand for light oil products is now lower than it will be in spring or autumn. This is a market situation, completely normal, which we can be only welcomed," he said.
A senior analyst of 'Uralsib', Alexei Kokin, suggested that the decline in gasoline prices may be caused by political reasons. "It may be connected with the agreement between companies and the government, which was concluded at the end of last year - it will last until the end of the quarter. It may also be due to the fact that there was a decline in oil prices at the end of last year, the haven't returned to highs of 2018. However, I would not have expected a further decline in gasoline prices - rather, there will be stabilization for several months, and then everything will depend on the dynamics of oil prices," the expert expects.