Fuel prices in Belarus to beat those in Russia

Belneftekhim concern has calculated that the optimal fuel price on the domestic market should be the price in the Russian Smolensk region plus 5-10%. In March 2017 alone, fuel prices in Belarus increased five times by BYN 0.01 due to the need to modernise refinery and reduce the oil-refining margin amid a decrease in oil supplies in Q1 2017. Fuel prices are likely to continue to increase until they beat those at petrol stations in the Russian regions bordering Belarus. Belarusian refineries are likely to improve financial health. Belarus is unlikely to sell less fuel on the domestic market due to higher fuel prices, however transport costs at enterprises would increase, leading to a possible hike in the tariffs for road transport in Belarus. Fuel prices in Belarus do not depend on the world prices, if need, the government would agree to a further increase in fuel prices to fill the country’s budget.