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.
Last week, Belarusian Foreign Minister Makei participated in the foreign ministers’ meeting of the Eastern Partnership and Visegrad Group initiative hosted by Warsaw. The Belarusian FM emphasized Belarus' interest in cooperation in the transport sector, which could be due to Belarus’ desire to export electricity surplus after Belarus finished construction of the nuclear power plant in Ostrovets. Minsk expressed concerns about Warsaw’s stance on the Belarusian NPP, as it refused to buy electricity from Belarus and supported Vilnius’ protest on this issue. Following accusations by the Belarusian leadership and the state media against western states, including Poland, of training "nationalist militants", Minsk did not agree on the visit of the European Parliament deputies from Lithuania and Germany to Belarus and to the NPP construction site near Ostrovets in particular. In addition, the Belarusian authorities have stepped up efforts to enforce education in Russian in Polish-language schools in Grodno and Vaukavysk. Should a rift in Belarusian-Polish relations persist, the Belarusian authorities are likely to step up the pressure on the Polish-speaking minority in Belarus.