Petrol prices may rise in Armenia in April – economist
03.03.2016,
11:35
Petrol prices in Armenia may rise in April after increase of excise taxes on petrol and diesel in Russia, Artak Manukyan, an economist, told ARKA News Agency on Wednesday.
YEREVAN, March 3. /ARKA/. Petrol prices in Armenia may rise in April after increase of excise taxes on petrol and diesel in Russia, Artak Manukyan, an economist, told ARKA News Agency on Wednesday.
On February 29, Russian President Vladimir Putin signed a decree raising excise taxes on motor petrol by 2 Russian rubles per one liter and diesel by one ruble for one liter.
Russia’s finance ministry says fuel prices will rise by about 5%.
Manukyan said petrol prices in Russia would rise from 35 rubles to 40 rubles (by about 20 Armenian drams).
As a rule, he said, discretional increases drive up prices in Armenia far quicker than discretional decreases drive them down, or don’t do it at all.
Manukyan added that the price rise in Russia doesn’t mean that the petrol imported from Russia will immediately become more expensive in Armenia, since it produces a lagged effect.
In his opinion, petrol prices in Armenia may go no more than 20 drams up.
At the same time, the economist thinks Armenia’s oil traders are selling their already existing reserves and will immediately react to the price rise in Russia and will be quick in raising their prices to be on the safe side.
“However, experience shows that such justified price increases should be under the anti-trust agency’s control,” he said. “It means that prices are believed to rise no earlier than in the second quarter or even later, but I think this will happen already in April.”
Manukyan said that increase in fuel prices will drive consumer prices up, since oil products are used in many segments of economy, but unlike Russia, Armenia will not face any increase in transport fares, since transporters mostly use gas.
The economist thinks Armenia should consider other sources for importing oil products, for example Eurasian Economic Union countries. In his words, Kazakhstan offers relatively cheap motor petrol.
According to the National Statistical Service of Armenia, one liter of motor petrol is traded at 396.6 drams and diesel at 395.4 drams. Petrol and diesel became 4.8% and 6% cheaper respectively in January 2016, compared with December 2015, and 15.1% and 16.3% cheaper than in January 2015.
In December 2013, Armenian and Russia presidents signed an agreement to lift Russian export duties from oil products, rough diamonds and natural gas exported to Armenia.
Export of no more than 300,000 tons of oil products to Armenia every year is free from duty. This volume fully caters for Armenia's needs. ---0--
On February 29, Russian President Vladimir Putin signed a decree raising excise taxes on motor petrol by 2 Russian rubles per one liter and diesel by one ruble for one liter.
Russia’s finance ministry says fuel prices will rise by about 5%.
Manukyan said petrol prices in Russia would rise from 35 rubles to 40 rubles (by about 20 Armenian drams).
As a rule, he said, discretional increases drive up prices in Armenia far quicker than discretional decreases drive them down, or don’t do it at all.
Manukyan added that the price rise in Russia doesn’t mean that the petrol imported from Russia will immediately become more expensive in Armenia, since it produces a lagged effect.
In his opinion, petrol prices in Armenia may go no more than 20 drams up.
At the same time, the economist thinks Armenia’s oil traders are selling their already existing reserves and will immediately react to the price rise in Russia and will be quick in raising their prices to be on the safe side.
“However, experience shows that such justified price increases should be under the anti-trust agency’s control,” he said. “It means that prices are believed to rise no earlier than in the second quarter or even later, but I think this will happen already in April.”
Manukyan said that increase in fuel prices will drive consumer prices up, since oil products are used in many segments of economy, but unlike Russia, Armenia will not face any increase in transport fares, since transporters mostly use gas.
The economist thinks Armenia should consider other sources for importing oil products, for example Eurasian Economic Union countries. In his words, Kazakhstan offers relatively cheap motor petrol.
According to the National Statistical Service of Armenia, one liter of motor petrol is traded at 396.6 drams and diesel at 395.4 drams. Petrol and diesel became 4.8% and 6% cheaper respectively in January 2016, compared with December 2015, and 15.1% and 16.3% cheaper than in January 2015.
In December 2013, Armenian and Russia presidents signed an agreement to lift Russian export duties from oil products, rough diamonds and natural gas exported to Armenia.
Export of no more than 300,000 tons of oil products to Armenia every year is free from duty. This volume fully caters for Armenia's needs. ---0--
