Gas stations began to close in Russia amid the fuel crisis

Gas stations began to close in Russia amid the fuel crisis

The day before, the Russian government imposed an indefinite ban on gasoline exports from Russia due to high prices.

Gas stations began to close in Russia amid the fuel crisis

Gas stations in Russian regions have fallen victim to the fuel crisis. Due to record stock prices, fuel shortages and delivery problems, they have begun to close, The Moscow Times reports.

"Indeed, there have been cases of gas station closures, and entrepreneurs are facing a situation where it is simply unprofitable to keep a gas station," said Alexander Vakhrushin, director of the Standard Oil chain in the Nizhny Novgorod region.

Local authorities warned fuel business representatives about the risk of closing gas stations in the Novosibirsk region in early September.

"The reason for the shutdown was either temporary supply disruptions due to logistical problems or financial difficulties faced by small fuel companies due to a pronounced disparity between wholesale and retail prices," the expert explained.

Despite the record growth of stock exchange prices for automotive fuel, the Russian authorities are restraining the growth of retail prices, fuel market participants complain. They do this by putting pressure on vertically integrated oil companies, primarily the Federal Antimonopoly Service (FAS). The latter, in turn, can restrain price increases by redistributing profits and losses within the company. But independent gas stations do not have this option.

"The disparity between wholesale and retail prices, which are 5-7 rubles higher than those of VNK, leads to an outflow of customers. Now many owners see no point in working," said Igor Maslov, deputy chairman of the expert council of the All-Russian competition "Russia's filling stations".

The day before, the government imposed an indefinite ban on gasoline exports from Russia. The only exceptions were made for supplies to the EAEU countries, Abkhazia and South Ossetia.

The harsh measures are the result of unsuccessful negotiations lasting more than a month with oil companies, which were required to sell more fuel on the exchange to extinguish the "price fire." Since the beginning of the year, gasoline prices have doubled.

In early autumn, diesel fuel and gasoline began to disappear from gas stations in the southern regions of Russia – Krasnodar Krai, Astrakhan and Samara regions, etc.

"The disparity between wholesale and retail prices makes it impossible to sell fuel at independent gas stations. Now many owners see no point in operating," said Igor Maslov, Deputy Chairman of the Expert Council of the All-Russian Contest "Russia's Gas Station".

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