Belarus’ motor fuel prices may grow 5-6% by late 2021 - Belneftekhim

<p> MINSK, Apr 15 - PrimePress. Motor fuel prices in Belarus’ internal market may increase by 5-6% by the end of 2021, said Svetlana Gurina, Deputy Chairperson of the state-run-petrochemical industries concern Belneftekhim. </p> <p>   </p> <p> Gurina made a statement to this effect at the Apr 15 session of Belneftekhim’s Public Advisory Council for Enterprise Development. </p> <p>   </p> <p> “In order to keep price stability on the market of petroleum products in 2021 Belneftekhim will continue implementing its strategy of gradual change of prices with due consideration of the comprehensive assessment of the changes of the market situation and the analysis of the economic position of the producers. With current economic conditions unchanged, including oil prices and the Belarusian ruble exchange rate, the year-end fuel prices are expected to increase by 5-6%," Prime reports citing Gurina as saying. </p> <p>   </p> <p> In her words, Belneftekhim’s pricing policy is aimed at maintaining an acceptable level of fuel prices to enterprises and individuals. Thus, the establishment of maximum price caps was chosen as a method of price regulation on the market of petroleum products. </p> <p>   </p> <p> The price of motor fuel at petrol stations is formed based on the producer’s price, including the seller's trade mark-up and VAT. The size of trade markups remains unchanged for a long time, while the target profitability parameter for the Belarusian oil refineries (Mozyr NPZ, and Naftan) is set at about 3% sales profitability. The Belneftekhim representative pointed out that oil procurement costs account for up to 90% in the cost of oil products production, and the oil price depends on global price quotations, delivery cost and the size of the customs duty expressed in foreign currency. </p> <p>   </p> <p> “As a result of rising costs of petroleum products production, to fulfill obligations to suppliers and banks, the price ceiling was increased by 10 kopecks ($0.04 at the rate of the National Bank of Belarus) from the beginning of the year," said Gurina. To adapt consumers to the price changes, Belneftekhim defined the basic strategy of a weekly change in fuel prices by no more than one Belarusian kopeck ($0.004, $1/Br2.6145) per litre. Gurina stressed that the cost of motor fuel in Belarus remains minimal compared to all the neighbouring countries which do not use the budget price damping mechanism. </p> <p>   </p> <p> She added that in the future they plan to switch over to formula-based pricing when signing long-term contracts with consumers, expanding the system of discounts for customers, development of loyalty programs at gas stations to stimulate the growth in consumption of fuel and related goods and services. </p> <p>   </p> <p> As previously reported, since early 2021 motor fuel prices have been raised ten times in Belarus as of April 15, 2021 - by 5.5% on average in total. In 2020, fuel prices were adjusted 16 times and increased by an average of 3.4%. In 2019, fuel prices in Belarus changed 28 times and increased by an average of 12.1%. End </p> <p>   </p>

2021-04-16

Primepress