Tuesday, May 29 2018 20:41
Emmanuil Mkrtchyan

Prices for gasoline in Armenia will continue to grow

Prices for gasoline in Armenia will continue to grow

ArmInfo. The prices for gasoline  in Armenia will continue to grow, although a new sharp jump should  not be expected yet. On average, automobile fuel prices in the  country rose by 6-8% over the past month, to 480 drams per liter of  A95.

According to Gazety.ru, gasoline prices in Russia for the week from  May 21 to 27 grew by 88-90 cents. At the same time, the cost of AI-92  fuel increased by 90 cents to 42.21 rubles per liter, and the price  for AI-95 gasoline added 88 cents and reached 45.5 rubles. That is,  the price rose by only 1.5% - 2%.

According to opinion of economic experts ArmInfo, the rise in prices  will be conditioned not only by the factor of their appreciable  increase in Russia due to the growth of world oil prices, but also  because the gasoline supplies to Armenia are not geographically  diversified and go exclusively from this country along the line  company Rosneft, which is the operator of the intergovernmental  agreement of 2013 on duty-free supplies of various types of oil  products to Armenia. In the current year, Rosneft will supply 210,000  tons of oil products to Armenia for a total of $ 175 million.

Moreover, the rise in prices is also due to another important factor:  the presence of monopolies in the domestic market through the  presence of informal quotas placed between the two main intermediary  monopoly-trader companies-monopolists.

Several years ago, 5 oil traders supplied petrol and diesel fuel to  Armenia not only from Russia, but also from Romania and Bulgaria. But  even then, the price jumps, due to the monopoly on imports, were  often too harsh and unjustified in time and depended on both  international oil prices and fluctuations in the dollar exchange rate  within the country. The presence of sufficient quantities of imported  fuel at the tank farms did not reduce the sharpness of price  fluctuations, since monopolists - importers immediately fixed future  profits. As long as the situation with monopolies in this sphere does  not change, Armenia, which does not have its own refineries, will  mirror the price situation in Russia with an additional surcharge of  0.20 euro per liter, especially since by 2025 it has to earn a  unified fuel -Energy power market. But by this time domestic prices  in Russia, most likely, will approach the level of European - 1,2  -1,5 euros per liter. And the project of building an oil refinery on  the Armenian-Iranian border, which could smooth the situation,  remained on paper.

To note, some CIS countries, for fear of sharp price jumps, are  taking their own protective measures. So Kazakhstan decided to stop  importing Russian fuel into the country for a while. Its refineries  will provide it. However, Kazakh experts understand that this is only  a temporary way out, an opportunity to avoid jumps and ensure a  smooth increase in prices.

An important factor in the absence of a direct and strong effect of  gasoline prices on the country's microeconomics and on the  inflationary macro-situation is the fact that about 80% of vehicles  in Armenia operate on gas fuel. However, high prices for gasoline and  diesel fuel significantly increase the costs of agricultural  producers.

POST A COMMENT
Input digits     


News
Martin Galstyan: In the age of knowledge-based economy, the mission of banks is not only to finance, but also to help businesses enhance their competitivenessMartin Galstyan: In the age of knowledge-based economy, the mission of banks is not only to finance, but also to help businesses enhance their competitiveness
Armenia, Vietnam developing business tiesArmenia, Vietnam developing business ties
Armenia, Vietnam discuss trade and economic relationsArmenia, Vietnam discuss trade and economic relations
Azerbaijan`s increased activity in the issue of constructing a  nuclear power plant poses certain challenges for ArmeniaAzerbaijan`s increased activity in the issue of constructing a  nuclear power plant poses certain challenges for Armenia
Armenia could bridge Vietnam with EAEU - Tran Thanh ManArmenia could bridge Vietnam with EAEU - Tran Thanh Man
Armenia, IMF discuss tax reforms Armenia, IMF discuss tax reforms
"Face to Face" with "The Power of One Dram"
Armenia nominated in 3 categories at the annual Wine Travel AwardsArmenia nominated in 3 categories at the annual Wine Travel Awards
Armenia`s national debt exceeds $13bln Armenia`s national debt exceeds $13bln 
Converse Bank  an underwriter of  Vardanants Center`s corporate bonds  Converse Bank an underwriter of Vardanants Center`s corporate bonds
Armenia`s minister of finance, head of IMF Armenia office discuss  risks in country`s financial sector Armenia`s minister of finance, head of IMF Armenia office discuss  risks in country`s financial sector 
Active work on Kajaran-Agarak section of North-South transport  corridor - Road Department Active work on Kajaran-Agarak section of North-South transport  corridor - Road Department 
Armenia`s expenditures AMD 1bln more in Jan-Feb 2025 as compared with  same period last year Armenia`s expenditures AMD 1bln more in Jan-Feb 2025 as compared with  same period last year 
Armenia`s minister of finance, ADB, FAR reps discuss fiscal policy,  national debt management Armenia`s minister of finance, ADB, FAR reps discuss fiscal policy,  national debt management 
Idram is now available in Yerevan CityIdram is now available in Yerevan City
Smart identification systems  installed at Zvartnots AirportSmart identification systems  installed at Zvartnots Airport
Armenia, Germany starting financial collaborationArmenia, Germany starting financial collaboration
8814 Armenian citizens received <social loans> worth 816 million  drams - Pashinyan8814 Armenian citizens received worth 816 million  drams - Pashinyan
Dmitry Volvach:  Agricultural product trade between Russia and  Armenia grew by 16.2% in 2024Dmitry Volvach:  Agricultural product trade between Russia and  Armenia grew by 16.2% in 2024
Armenia`s gross international reserves $3.372bln Armenia`s gross international reserves $3.372bln 
Armenia`s Tourism Committee, Air Arabia agree on close cooperation Armenia`s Tourism Committee, Air Arabia agree on close cooperation 
`We are on the best way`- ZCMC`We are on the best way`- ZCMC
Yerevan hosting Yerevan hosting "Caucasus: Construction and Repair EXPO 2025"  exhibition
USD transactions up, RUB ones down in Armenia`s interbank foreign  exchange market Mar 24 to 28, 2025USD transactions up, RUB ones down in Armenia`s interbank foreign  exchange market Mar 24 to 28, 2025
GIZ representatives discuss a five-year tourism development strategy in ArmeniaGIZ representatives discuss a five-year tourism development strategy in Armenia
Armenia, UAE  exploring potential for cooperation in medical and ski  tourism industriesArmenia, UAE  exploring potential for cooperation in medical and ski  tourism industries
Unlocking opportunities for Armenian agribusiness in  EU and Swedish  food markets: launch of initiative announcedUnlocking opportunities for Armenian agribusiness in  EU and Swedish  food markets: launch of initiative announced
Armenia`s government to act as reinsurer of agricultural risks Armenia`s government to act as reinsurer of agricultural risks 
Order of cadastral evaluation of municipal lands discussed in Armenia Order of cadastral evaluation of municipal lands discussed in Armenia 
Starlink officially in Armenia Starlink officially in Armenia 
Luys Foundation: Armenia`s economic growth rate slowing down rapidlyLuys Foundation: Armenia`s economic growth rate slowing down rapidly
Moscow: Armenia`s membership in  EU and EAEU are mutually  unacceptableMoscow: Armenia`s membership in  EU and EAEU are mutually  unacceptable
Armenia cannot `occupy two chairs` - Alexei OverchukArmenia cannot `occupy two chairs` - Alexei Overchuk
Jazeera Airways launches Al Kuwait-Yerevan-Al Kuwait flightJazeera Airways launches Al Kuwait-Yerevan-Al Kuwait flight
Armenia`s government allocates AMD 2.1bln as co-funding of 23  subvention programmes Armenia`s government allocates AMD 2.1bln as co-funding of 23  subvention programmes 
Due to  foot-and-mouth disease threat,  Armenia  banned  meat imports from GermanyDue to  foot-and-mouth disease threat,  Armenia  banned  meat imports from Germany
Economist: Armenian Eurobonds covering current expenses cannot be  called <successful>Economist: Armenian Eurobonds covering current expenses cannot be  called
Armenia, Hong Kong to cooperate on matters concerning the prevention  of double taxationArmenia, Hong Kong to cooperate on matters concerning the prevention  of double taxation
Armenia`s authorities against their own targets - opposition MPArmenia`s authorities against their own targets - opposition MP
Armenia`s ministry of high-tech industry, Quantori company to deepen  cooperation Armenia`s ministry of high-tech industry, Quantori company to deepen  cooperation 
S&P Global Ratings: Private sector debt burden in Armenia will  continue to growS&P Global Ratings: Private sector debt burden in Armenia will continue to grow
Mirzoyan: Armenia to increase bilateral trade turnover with Iran to  $3 billionMirzoyan: Armenia to increase bilateral trade turnover with Iran to $3 billion
Digital attache:  Armenian companies increasingly adopting  Russian  digital solutionsDigital attache:  Armenian companies increasingly adopting  Russian  digital solutions
Third Russian-Armenian construction forum to take place in YerevanThird Russian-Armenian construction forum to take place in Yerevan
In Armenia, industrial sector declining while industrial price index  risingIn Armenia, industrial sector declining while industrial price index  rising
Economic growth in Armenia slowed due to a decline in the industrial  sector and foreign tradeEconomic growth in Armenia slowed due to a decline in the industrial  sector and foreign trade
Armenian NA discussing amendments to Law on State Pensions Armenian NA discussing amendments to Law on State Pensions 
Armenia, China establishing cooperation in tourism industry Armenia, China establishing cooperation in tourism industry 
Security of property be in effect for Karabakh businessmen working in  Armenia - CBA Security of property be in effect for Karabakh businessmen working in  Armenia - CBA 
AraratBank: The Only Victory is the Smile of a Recovered ChildAraratBank: The Only Victory is the Smile of a Recovered Child
SRC: Revision of rules for appealing fines does not apply to administrative acts issued by  RA State Revenue CommitteeSRC: Revision of rules for appealing fines does not apply to administrative acts issued by  RA State Revenue Committee
Armenia`s State Revenue Committee  sees great tax potential in  construction sector in 2025Armenia`s State Revenue Committee  sees great tax potential in  construction sector in 2025
Shirak Avia airline launches Krasnoyarsk-Yerevan-Krasnoyarsk flight Shirak Avia airline launches Krasnoyarsk-Yerevan-Krasnoyarsk flight 
Armenia`s Tourism Committee, St. Petersburg Convention and Exhibition  Bureau interested in cooperation Armenia`s Tourism Committee, St. Petersburg Convention and Exhibition  Bureau interested in cooperation 
Armenian CB proposes forfeiting AMD printing of status of state secret Armenian CB proposes forfeiting AMD printing of status of state secret 
USD, RUB transactions decreased in Armenia`s interbank foreign  exchange market, March 17 -21, 2025USD, RUB transactions decreased in Armenia`s interbank foreign  exchange market, March 17 -21, 2025
IDBank new branch is in the City of ArtashatIDBank new branch is in the City of Artashat
Armenia expecting clarifications from Russian partners on  rebroadcasting  agreement - MinisterArmenia expecting clarifications from Russian partners on  rebroadcasting  agreement - Minister
Ameriabank and CJSC Dinno present joint PayLink platform for businessesAmeriabank and CJSC Dinno present joint PayLink platform for businesses
Armenia, Russia  aim to boost their mutual agricultural trade volumeArmenia, Russia  aim to boost their mutual agricultural trade volume
Read more
Exchange rates
02.04.2025
RUB4.650.04
USD391.160.06
EUR422.18-0.09
GBP505.971.14
CAD273.021.06
JPY26.18-0.01
CNY53.800.00
CHF442.44-0.93