Refineries to recover losses from Russia’s tax manoeuvre by rising motor fuel prices

Belneftekhim is starting a gradual increase in the motor fuel price due to the deteriorated terms of oil supply from Russia to Belarus and the growth in oil prices on the world market. Fuel prices in Belarus remained unchanged for two years, Russia’s tax manoeuvre has led to an increase in the oil price for Belarus by USD 23.7 per tonne in 2017, while oil supply to Belarus in 2017 is estimated at 16 million tons. The Belarusian refineries are likely to gradually increase the motor fuel price by BYN 0.4 per litre in total in order to compensate for the losses, deteriorated financial health of oil refining and a decrease in fuel sales at a discount price to agribusiness enterprises. The modernisation of the refinery and the possible reduction in oil supplies to Belarus to 12 million tons could increase refinery’s needs and lead to a more significant increase in the fuel price in 2017.