Russia needs cheap gasoline!
It would seem that a rather strange question we put into the title. However, after our comment on a negative outlook gasoline prices has caused a truly unprecedented interest of readers, it is simply impossible not to ask them.
To begin with, for Russia, especially for its many suburbs and enclaves, stable transportation to the metropolis is a matter of life and death. On strategic considerations will not even extend. Therefore, in a number of cases, we just need not just to have cheap fuel available and not just to have a lot of fuel, but to have it so much that it is enough for any unforeseen events and circumstances.
There is another consideration that can be classified as strategic. Russia still remains the most promising potential destination for the East-West global transit route, no matter how China promoted its Silk Road project. If transit with a length of several thousand kilometers is also supported by cheap fuel, many of its advantages will clearly be perceived quite differently. More precisely, with much greater enthusiasm.
Do not forget that the relatively cheap gasoline is included in the cost of almost any product, both produced in our country, and transported by it. And therefore, relatively cheap fuel is one of the few competitive advantages that Russian business actually has. In addition to it, the advantage, although very doubtful, remains also the cheapness of labor, highly skilled as well.
There is also in a certain sense an unimportant factor in favor of cheap gasoline. Power, keeping relatively low prices for gasoline, can thereby stimulate deeper processing of hydrocarbons - in plastic, varnishes and paints, polymeric materials, etc. Alas, if this were indeed the case, it would only remain to rejoice at our deep refining. In reality, there are no incentives and no direct connection here yet.
But back to the actual fuel. At the start of reforms, Russia had at its disposal almost the cheapest fuel among all countries with any developed industry. After the default of 1998, gasoline in the country in general fell sharply in dollar terms, but quickly began to go up in rubles. The process of returning to the prices of the summer level of the same 98 of the year managed to stretch almost to the next big crisis that happened at the turn of 2008-2009.
It is characteristic that our domestic market has always been saved at all by the competition between the oil giants, which their representatives are constantly trying to convince us. This is only an attempt to once again justify the division of the most profitable sector of the economy, which was turned in the middle of the 90-s under the guise of large-scale Chubais privatization. The colossal capacity of the still Soviet oil refineries along with the limited possibilities of exporting oil and oil products abroad saved the market.
In principle, it is the huge volumes of gas produced in the country that help us even now. Nevertheless, regular petrol crises happened in Russia both in the same dashing 90, and in fat zero, and under sanctions, and without any sanctions. And yet, recently, the fuel situation has become at least a little more acceptable. After the ruble four years ago once again fell at the rate of the euro and the dollar, a liter of gasoline at Russian gas stations even fell slightly.
But only in dollar terms. If in the summer of 2014 of the year for a liter of 95, it was necessary to give 30,5 rubles, that is, almost 0,75 dollars, by the fall of the ruble price rose to 35,2 rubles, which with a rise in price of dollars from just 45 to 50 cents. After that, the dollar jumps, as well as the euro, were no longer so strong, but the price of gasoline continued to rise after the currencies. As with the rising price of oil, and with a falling.
However, in the spring of this year, it was not possible to keep such a relatively favorable situation even at the cost of titanic efforts in the fight against the kings of gas stations. Then, we recall, the prices at the gas station in dollar terms almost returned to the levels of just 2014 of the year. With the price of 95 gasoline almost 50 rubles per liter, the mark in the 0,75 dollar was very close, but it wasn’t allowed to reach it - the Antimonopoly Service in a duet with the Ministry of Energy.
But now, due to the slow, but rather confident recovery of the national currency, gasoline, if, again, is counted on the dollar, also increases in price, and also, albeit slowly, but quite confidently. And there is hardly any doubt that even after the ruble goes down again, nothing of the kind will happen to gasoline.
Concluding our brief review, we note that, generally speaking, the maxims of our fuel market regulators themselves that Russia is almost the cheapest gasoline in the world have no basis. The cheapest gasoline (and this fact is well known) for today in Venezuela. There it costs only 0,01 dollars per liter, which is really very cheap compared to Russian 0,6 dollars. But how it turns out is also well known.
On corruption in those circles that are engaged in this country with gasoline subsidies, we better keep silent. The acute shortage of fuel at the Venezuelan gas stations, especially in the outback, wholesale speculation, sharp disassembly between various “special” buyers, and finally, just squandering too cheap fuel — all this has long become the norm in Venezuela. But, judging by the latest events, all this, obviously, very soon will be in the past.
In addition to Venezuela, gasoline is cheaper than in Russia, and significantly, in several other countries. Of course, in oil-producing countries - for example, in Saudi Arabia, the Emirates, Iran, Kuwait, Malaysia and Nigeria. But the main thing is not even that. The fact is that gasoline prices must be compared with the level of income in the country. And with this we have the situation you know how. So, according to a study conducted by British Petroleum this year, if a Russian has to pay almost 1 / 40 a part of their daily earnings for a liter of gasoline, then, for example, an American takes less than half a percent of his money to a liter of “expensive” gasoline that is, the smaller 1 / 200 parts.
We Russians, we have to put up with the fact that most Europeans, and even the Japanese and Chinese, also pay a little for gasoline. Indeed, more Russians pay for gasoline to residents of only nine countries from 61, examined by BP experts. To be among them was not lucky, for example, to Mexicans, Canadians and Greeks.
It remains to be glad that such dubious cheapness of Russian gasoline generally has little effect on all sorts of business components, which were discussed at the beginning of our review.
To begin with, for Russia, especially for its many suburbs and enclaves, stable transportation to the metropolis is a matter of life and death. On strategic considerations will not even extend. Therefore, in a number of cases, we just need not just to have cheap fuel available and not just to have a lot of fuel, but to have it so much that it is enough for any unforeseen events and circumstances.
There is another consideration that can be classified as strategic. Russia still remains the most promising potential destination for the East-West global transit route, no matter how China promoted its Silk Road project. If transit with a length of several thousand kilometers is also supported by cheap fuel, many of its advantages will clearly be perceived quite differently. More precisely, with much greater enthusiasm.
Do not forget that the relatively cheap gasoline is included in the cost of almost any product, both produced in our country, and transported by it. And therefore, relatively cheap fuel is one of the few competitive advantages that Russian business actually has. In addition to it, the advantage, although very doubtful, remains also the cheapness of labor, highly skilled as well.
There is also in a certain sense an unimportant factor in favor of cheap gasoline. Power, keeping relatively low prices for gasoline, can thereby stimulate deeper processing of hydrocarbons - in plastic, varnishes and paints, polymeric materials, etc. Alas, if this were indeed the case, it would only remain to rejoice at our deep refining. In reality, there are no incentives and no direct connection here yet.
But back to the actual fuel. At the start of reforms, Russia had at its disposal almost the cheapest fuel among all countries with any developed industry. After the default of 1998, gasoline in the country in general fell sharply in dollar terms, but quickly began to go up in rubles. The process of returning to the prices of the summer level of the same 98 of the year managed to stretch almost to the next big crisis that happened at the turn of 2008-2009.
It is characteristic that our domestic market has always been saved at all by the competition between the oil giants, which their representatives are constantly trying to convince us. This is only an attempt to once again justify the division of the most profitable sector of the economy, which was turned in the middle of the 90-s under the guise of large-scale Chubais privatization. The colossal capacity of the still Soviet oil refineries along with the limited possibilities of exporting oil and oil products abroad saved the market.
In principle, it is the huge volumes of gas produced in the country that help us even now. Nevertheless, regular petrol crises happened in Russia both in the same dashing 90, and in fat zero, and under sanctions, and without any sanctions. And yet, recently, the fuel situation has become at least a little more acceptable. After the ruble four years ago once again fell at the rate of the euro and the dollar, a liter of gasoline at Russian gas stations even fell slightly.
But only in dollar terms. If in the summer of 2014 of the year for a liter of 95, it was necessary to give 30,5 rubles, that is, almost 0,75 dollars, by the fall of the ruble price rose to 35,2 rubles, which with a rise in price of dollars from just 45 to 50 cents. After that, the dollar jumps, as well as the euro, were no longer so strong, but the price of gasoline continued to rise after the currencies. As with the rising price of oil, and with a falling.
However, in the spring of this year, it was not possible to keep such a relatively favorable situation even at the cost of titanic efforts in the fight against the kings of gas stations. Then, we recall, the prices at the gas station in dollar terms almost returned to the levels of just 2014 of the year. With the price of 95 gasoline almost 50 rubles per liter, the mark in the 0,75 dollar was very close, but it wasn’t allowed to reach it - the Antimonopoly Service in a duet with the Ministry of Energy.
But now, due to the slow, but rather confident recovery of the national currency, gasoline, if, again, is counted on the dollar, also increases in price, and also, albeit slowly, but quite confidently. And there is hardly any doubt that even after the ruble goes down again, nothing of the kind will happen to gasoline.
Concluding our brief review, we note that, generally speaking, the maxims of our fuel market regulators themselves that Russia is almost the cheapest gasoline in the world have no basis. The cheapest gasoline (and this fact is well known) for today in Venezuela. There it costs only 0,01 dollars per liter, which is really very cheap compared to Russian 0,6 dollars. But how it turns out is also well known.
On corruption in those circles that are engaged in this country with gasoline subsidies, we better keep silent. The acute shortage of fuel at the Venezuelan gas stations, especially in the outback, wholesale speculation, sharp disassembly between various “special” buyers, and finally, just squandering too cheap fuel — all this has long become the norm in Venezuela. But, judging by the latest events, all this, obviously, very soon will be in the past.
In addition to Venezuela, gasoline is cheaper than in Russia, and significantly, in several other countries. Of course, in oil-producing countries - for example, in Saudi Arabia, the Emirates, Iran, Kuwait, Malaysia and Nigeria. But the main thing is not even that. The fact is that gasoline prices must be compared with the level of income in the country. And with this we have the situation you know how. So, according to a study conducted by British Petroleum this year, if a Russian has to pay almost 1 / 40 a part of their daily earnings for a liter of gasoline, then, for example, an American takes less than half a percent of his money to a liter of “expensive” gasoline that is, the smaller 1 / 200 parts.
We Russians, we have to put up with the fact that most Europeans, and even the Japanese and Chinese, also pay a little for gasoline. Indeed, more Russians pay for gasoline to residents of only nine countries from 61, examined by BP experts. To be among them was not lucky, for example, to Mexicans, Canadians and Greeks.
It remains to be glad that such dubious cheapness of Russian gasoline generally has little effect on all sorts of business components, which were discussed at the beginning of our review.
Information