Belneftehim pegged domestic fuel costs to US Dollar
On September 8th, a new indexing mechanism for fuel retail price was published.
The base petrol brand has been set to AI92-K5-Euro at USD 1 per litre. In Belarus fuel costs will only rise, regardless of the world fuel prices (there is no mechanism for reducing the cost of fuel). Therefore, Belarus’ refineries will increase budgetary proceeds, people and businesses will reduce fuel consumption, and foreign carriers will partially lose interest in Belarusian fuel. The excise tax on fuel will continue to rise. If Russia changes taxation in the oil refining business, Belarus might also have to adapt by making changes.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.