Market oil prices fall, fuel prices rise

Retail prices on diesel and petrol fuel rose by 4.3% in Belarus to compensate for the Belarusian ruble depreciation against the US Dollar.

The Belarusian ruble exchange rate fluctuations since early 2014 were offset by lower market prices on oil. The government has increased fuel prices in order to generate budget revenues. As a result, corporate costs will increase as raw materials and goods will be transported by road; the demand for Belarusian fuel will decrease, reducing sales at garages near the border. However, oil refineries’ profits will increase, meaning additional budget revenues. The government will continue readjusting fuel prices depending on its needs for additional budget revenues (oil prices not being the major factor).