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Genady Shmal: in the future the price for petrol may increase by 8-10%

December 19, 2016/ 15:38

Moscow. The price for petrol in 2017 is one of the key issues the Russians are concerned about. The planned increase of excise tax, the Mineral Extraction Tax (MET) and the stable rise of the oil price are the factors that may seriously affect the price of oil products. Genady Shmal, the President of Russian Oil and Gas Producers Union, gives his opinion as regards to the petroleum price for next year to the Oil and Gas Information Agency.

“The price for petroleum will automatically rise after the increase of the Mineral Extraction Tax (MET). As far as the excise tax is concerned, there is no data available yet. The issue is still being discussed by the government, but we should keep in mind that the excise tax was raised twice this year. The trend will continue: the increase of taxes is provided for by the Russian Federation budget for 2017.

We should also remember about the inflation, which is expected to be 4-5%. All these factors combined will cause the increase of the prices for petrol and diesel fuel.

In 2017 the price for fuel will rise, but slowly, without jumps. However, the increase will start at the end of quarter 1 of 2017. There is stock, purchased this year at a lower price, which won’t let the price for petrol go up steeply. In general, I suppose, the price for this kind of motor fuel will increase by 8-10% next year”.

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