Fuel Crisis: Oil Companies Against The People

Video: Fuel Crisis: Oil Companies Against The People

No gas

Fuel crisis

The first news about gasoline sales interruptions in Altai appeared last week. Over the weekend, the situation sharply worsened: at a number of gas stations fuel was lost altogether, and at others huge lines grew.

According to Za Rulem. Rf, the head of the Altai branch of the Russian Federation of Car Owners of Russia (FAR) Viktor Klepikov, the situation in the region began to change only after the prosecutor’s office began checking the gas station.

“Initially, no more than 20 liters of Ai-92 gasoline were dispensed at network gas stations, and even then, with a plastic fuel card,” says Klepikov. “The gasoline AI-98 and AI-95 completely disappeared from sale.”

At some gas stations, the price of 92nd gasoline rose to 28 rubles per liter. Now the situation with fuel in the region has gradually begun to improve. But similar problems have appeared in other areas.

“In the Belgorod, Voronezh, Lipetsk, Kemerovo, Tula regions there is a low level of high-octane gasoline reserves of 3-5 days,” the official message of the Ministry of Industry and Energy says (as of April 28). Also at risk are St. Petersburg, Voronezh, Novosibirsk and Sakhalin.

Prices should be like in Europe

According to the chairman of the Russian Fuel Union (RTS) Yevgeny Arkushi, the fuel shortage in the Russian market has developed out of several circumstances. The most important of these are the country's abrupt transition to the Euro 3 fuel standard and the cessation of the production of AI-80 gasoline.

Fuel crisis

However, not all plants can produce gasoline in accordance with the new fuel regulations. “According to the Ministry of Industry and Energy, the products of only 68 percent of plants can correspond to class 3 and higher,” explained Arkusha, “Behind the Wheel. Russia.”

Another factor in the deficit, according to the oil industry, was the government’s compulsory regulation of domestic prices at the direction of Vladimir Putin. “When instructed, world oil prices were in the region of 70–80 dollars per barrel, now they have risen to 110–120 dollars,” the source continues.

In this situation, oil companies and traders chose to make money on exporting fuel abroad, which is why there was a shortage of fuel in Russia. At the same time, the chairman of the RTS notes that independent market players had a particularly hard time.

Oil companies with oil refineries (refineries) raised wholesale prices, while their network gas stations sold gasoline and diesel at reduced prices, operating at minus or to the point of loss. Private independent owners could not afford to buy fuel at such a high price and, accordingly, trade at a loss. Therefore, many gas stations in Altai temporarily do not work.

Cartel

According to the head of the Altai branch of the FAR, the vertically integrated oil companies (vertically integrated oil companies) took such a step deliberately in order to oust independent sellers from the market and to monopolize the business.

“In our region there are about 750 private gas stations, Rosneft has about 100 stations, and Gazprom Neft has about 17 points. However, all private refuelers are forced to buy fuel from them at high prices,”says Klepikov.

Fuel crisis

“Thus, oil companies decided to eliminate small intermediaries. But arranging this during the sowing season is something transcendental,”says Sergei Yurchenko, deputy of the Altai legislative assembly from the Communist Party faction.

The Federal Antimonopoly Service (FAS) suspects Rosneft and Gazprom Neft of abusing their dominant position in the regional market. On Tuesday, the regional branch of the FAS filed a criminal case against these companies.

Other corporations also came under the control of antitrust monitors. “FAS Russia will request from OAO Lukoil, OAO Gazprom Neft, OAO TNK-BP Holding, OAO NK Rosneft, OAO Surgutneftegas, OAO Tatneft, OAO NK Alliance, OAO ANK Bashneft “Explanations of the causes of the shortage of goods in a number of regions of the Russian Federation,” the agency’s website said.

What to do?

However, the oil companies themselves do not admit their guilt. They see the only way out of the existing problem in lowering fuel taxes and changing the compulsory tariff scale. Gas prices can still rise if the government does not take measures to reduce the tax burden on oil workers, businessmen warn.

“The deficit problem and fuel prices will be solved by the government manually, at least until the next election,” said Dmitry Abzalov, an analyst at the Center for Political Conjuncture. A short-term tool may be the restriction of the export ban.

Fuel crisis

The desire of oil companies to raise prices comes from perfectly logical market considerations. However, even in the current situation, oil companies operate in Russia with a profit, but not the way they would like, an expert of the Center is sure.

It will be difficult for the government to constantly “manually” regulate this issue, therefore a more effective mechanism will be created in which the constant intervention of state leaders will not be required. According to Abzalov, the new principle of oil companies will include the following conditions:

Creation of independent oil refineries (or with a small share of vertically integrated oil companies) that will sell fuel on market conditions.
Ensuring with the help of the FAS non-discriminatory access of private operators to refineries.
Creation of a large exchange platform for competitive trading.
Creation of an effective network of gas stations without corrupt fuel distribution schemes.

And until this happens, drivers are forced to overcome the artificial fuel collapse. In protest, the Federation of Altai Motorists will hold a rally on April 30 in Barnaul on Academician Sakharov Square. They will come by bicycle.

Fuel crisis: oil companies against the people
At the end of April, a fuel crisis erupted in Russia, the epicenter of which was the Altai Republic and Altai Territory. Very quickly, a wave of shortages and rising fuel prices spread to other regions. Oil workers claim that the blame for everything is the artificial containment of prices by the government. Antitrust officials and experts see this as a cartel conspiracy of oil businessmen. We tried to understand how the confrontation of both will end for motorists.
No gas
The first news about gasoline sales interruptions in Altai appeared last week. Over the weekend, the situation sharply worsened: at a number of gas stations fuel was lost altogether, and at others huge lines grew.
According to Za Rulem. Rf, head of the Altai branch of the Russian Federation of Car Owners of Russia (FAR) Viktor Klepikov, the situation in the region began to change only after the prosecutor’s office began checking the gas station.
“Initially, no more than 20 liters of Ai-92 gasoline were dispensed at network gas stations, and even with a plastic fuel card,” says Klepikov. “The gasoline AI-98 and AI-95 completely disappeared from sale.”
At some gas stations, the price of 92nd gasoline rose to 28 rubles per liter. Since now, the situation with fuel in the region has gradually begun to improve. But similar problems have appeared in other areas.
“In the Belgorod, Voronezh, Lipetsk, Kemerovo, Tula regions there is a low level of high-octane gasoline reserves of 3-5 days,” the Ministry of Industry and Energy said in an official message (as of April 28).
Prices should be like in Europe
According to the Chairman of the Russian Fuel Union (RTS) Yevgeny Arkushi, the shortage of fuel in the Russian market has developed out of several circumstances. The most important of these are the country's abrupt transition to the E-3 fuel standard and the cessation of gasoline production A and -80.
However, not all plants can produce gasoline in accordance with the new fuel regulations. “According to the Ministry of Industry and Energy, the products of only 68 percent of plants can correspond to Grade 3 and higher,” explained Arkusha, “For Rule. Rf”.
Another factor in the deficit, according to the oil industry, was the government’s forced regulation by the order of Vladimir Putin on selling prices on the domestic market. “When world oil prices were given, they were in the region of 70–80 dollars per barrel, now they have risen to 110–120 dollars,” the source continues.
In this situation, oil companies and traders chose to make money on exporting e fuel abroad, which caused a shortage of fuel in Russia. At the same time, the chairman of the RTS notes that independent market players had a particularly hard time.
Oil companies with oil refineries (refineries) raised wholesale prices, while their network gas stations sold gasoline and diesel at reduced prices, operating at minus or to the point of loss. Private independent owners could not afford to buy fuel at such a high price and therefore trade at a loss. Therefore, many gas stations in Altai temporarily do not work.
Cartel
According to the head of the Altai branch of the FAR, the vertically integrated oil companies and (vertically integrated oil companies) took such a step deliberately in order to oust independent sellers from the market and to monopolize the business.
“In our region there are about 750 private gas stations, Rosneft has about 100 stations, and Gazprom Neft has about 17 points. However, all private refuelers are forced to buy fuel from them at high prices,”says Klepikov.
“Thus, oil companies decided to eliminate small intermediaries. But arranging this during the sowing season is something transcendental,”says Sergei Yurchenko, deputy of the Altai legislative assembly from the Communist Party faction.
The Federal Antimonopoly Service (FAS) suspects Rosneft and Gazprom Neft of abusing their dominant position in the regional market. On Tuesday, the regional branch of the FAS filed a criminal case against these companies.
Other corporations also came under the control of antitrust monitors. “FAS Russia will request from OAO Lukoil, OAO Gazprom Neft, OAO TNK-BP Holding, OAO NK Rosneft, OAO Surgutneftegas, OAO Tatneft, OAO NK Alliance, OAO ANK Bashneft “Explanations of the causes of the shortage of goods in a number of regions of the Russian Federation,” the agency’s website said.
What to do?
However, the oil companies themselves do not admit their guilt. They see the only way out of the existing problem in lowering fuel taxes and changing the compulsory tariff scale. Gas prices can still rise if the government does not take measures to reduce the tax burden on oil workers, businessmen warn.
“The deficit problem and fuel prices will be solved by the government manually, at least until the next election,” said Dmitry Abzalov, an analyst at the Center for Political Conjuncture. A short-term tool may be the restriction of the export ban.
The desire of oil companies to raise prices comes from perfectly logical market considerations. However, even in the current situation, oil companies operate in Russia with a profit, but not as much as they would like, an expert of the Center is sure.
It will be difficult for the government to constantly “manually” regulate this issue, therefore, a more effective mechanism will be created in which the constant intervention of state leaders will not be required. According to Abzalov, the new principle of operation of oil companies will be built on the following principle:
Independent refineries will be created (or with a small share of vertically integrated oil companies) that will sell fuel on market conditions.
Using FAS, non-discriminatory access of private operators to refineries was ensured
Created a large exchange platform for competitive trading
An effective network of gas stations without corrupt fuel distribution schemes has been created
And until this happens, drivers are forced to overcome the artificial fuel collapse. In protest on April 30, the Federation of Altai Motorists will hold a rally in Barnaul on Academician Sakharov Square. They will come by bicycle.