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The regime makes good money on gasoline inside Belarus – and constantly raises fuel prices

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On April 20, Belneftekhim raised fuel prices for the 11th (!) Time since the beginning of the year — for almost 5 months. Since the beginning of the year, the price has already increased by 5.4%. And this despite the fact that for the entire 2020, the cost of fuel changed only 16 times.

With domestic prices, the concern compensates for inefficient exports. Market prices cannot be raised simply at will, but domestically, they can. Therefore, Belarusians pay for all failures in the export direction.

Few figures on Belarusian trade in petroleum products in 2020:

• about $ 382 per ton — average export price of gasoline;
• about $ 582 per ton — the average price of gasoline for the domestic market excluding excise tax and VAT;
• excise and VAT — this is another $ 255 per ton.

It is not surprising that the Belarusian oil industry makes money on the domestic market. Even in spite of the fact that only 25% of the products of Belarusian refineries go to the
interior of the country.

In 2020, the regime earned $ 350 million on fuel excise taxes alone.

What we can do?

We can reduce fuel consumption — especially 95 gasoline. These are our economic sanctions against the regime. Change to public transport, taxis (usually gas) or bicycles. It is more and more pleasant to walk short distances — the weather permits.

As we have already said, the refusal from 95th gasoline has not only a direct economic effect, but also an indirect one. Expensive components will have to be spent on producing cheaper fuel. The refinery does not have much storage space for 95 gasoline (when compared to 92, especially when compared to diesel). Reducing consumption of AI-95 will lead to the filling of storage tanks. And if sales of this type of fuel do not recover, after some time the refinery will have to stop production of 95th gasoline.

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