Petrol prices go up - faster than salaries grow
Regardless the fact that on 1st December petrol prices have increased for the 11th time in 2011, the price of gasoline has not yet reached the pre-crisis level (USD 1.1-1.2 per liter). Therefore further price increases will follow.
On 3 December concern “Belneftekhim” announced the following, the 11th since the beginning of 2011, petrol price increase. Prices have increased by 10% on average.
Petrol prices on the domestic market do not cover the cost of its production: refineries are operating at a loss, while export of petroleum products does not compensate for the cost of raw materials and losses on the domestic market. Moreover, the price of gasoline is still significantly lower than in the neighboring countries, which increases the demand for cheaper fuel on the domestic market. In the meanwhile, a common market with Russia requires adjustment of prices and the principles of the pricing policy.
The country's leadership has instructed the local authorities to raise minimum wages at enterprises by the end of 2019 to BYN 1,000, which would lead to an increase in the average wage in the economy as a whole to BYN 1 500. The pace of wage growth in 2017 is insufficient to ensure payroll at BYN 1000 by late 2017 without manipulating statistical indicators. In order to fulfil the president’s order, the government would have to increase budgetary expenditures on wages in healthcare and education, enterprises – to carry out further layoffs and expand the practice of taking loans to pay wages and restrict investment in modernisation of fixed assets. In 2010, the artificial increase in wages led to a threefold devaluation in 2011, an increase in the average salary to BYN 1500 will not match the capabilities of the economy and would lead to yet another devaluation.