Gas stations in Russian regions have become victims of the fuel crisis. Due to record fuel prices, fuel shortages, and delivery problems, they began to close, The Moscow Times reports.
“Indeed, there have been cases of gas station closures, and entrepreneurs are facing a situation where it is simply not profitable to keep a gas station,” said Alexander Vakhrushin, director of Standard Oil in the Nizhny Novgorod region.
Local authorities warned fuel business representatives about the risk of closing gas stations in the Novosibirsk region in early September.
“The reason for the shutdown was either temporary supply disruptions due to logistical problems or financial difficulties faced by small fuel companies due to a pronounced disparity between wholesale and retail prices,” the expert explained.
Despite a record increase in stock prices for automotive fuel, the Russian government is holding back the growth of retail prices, fuel market participants complain. They do this by putting pressure on vertically integrated oil companies by regulators, primarily the FAS. They, in turn, can restrain price growth by redistributing profits and losses within the company. But independent gas stations are deprived of this opportunity.
“The disparity between wholesale and retail prices makes it impossible to sell fuel at independent filling stations. Now many owners see no point in operating,” said Igor Maslov, Deputy Chairman of the Expert Council of the All-Russian Contest “Russia’s Gas Station”.
The day before, the Russian government imposed an indefinite ban on gasoline exports from Russia. The only exception is for supplies to the EAEU countries, Abkhazia and South Ossetia.
The tough measures were the result of unsuccessful negotiations that lasted more than a month with oil companies, which were required to sell more fuel on the exchange to extinguish the “price fire.” Gasoline prices have doubled since the beginning of the year.
