Russia caps fuel prices Ahead of Polls – Reuters
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Saturday, 08 October 2011 |
Russian officials have moved to unofficially rein in fuel prices ahead of key polls in December and March, according to Reuters. Citing unnamed traders and sources in Russia, the agency says that oil companies have effectively been keeping a cap since August on gasoline prices at the pump, a sensitive issue among Russian voters.
Sources who spoke to the agency said they had received verbal orders from the Government not to raise prices, despite increases in the price of wholesale refined product. "There won't be any moves before the elections, although there are no written directives from Moscow," said a Saratov TNK-BP retail station worker. "We were about to increase the price, but we were told to draw in our horns. 'Are you crazy? Elections are coming!' they told us," a Lukoil official said.
In the past year, oil companies have been hit with fines worth hundreds of millions of dollars by anti-monopoly regulators for raising prices. Wholesale prices for A-92, the most popular gasoline in Russia, have increased by 33% in the past 12 months, with retail prices only climbing 10%. Vladimir Putin, who is seeking election once again to the post of President, publicly demanded price curbs in February.
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