The head of LUKOIL has estimated the rising price of gasoline in 2017

The increase in excise duties on fuel in early 2017, will lead to higher retail prices for gasoline and diesel fuel, warns the head and co-owner of oil company LUKOIL Vagit Alekperov.

“From January 1, will increase excise duties on diesel fuel and on gasoline by about two rubles. Within two rubles. Of course, we won’t one day leave this up to our customers, we are still a socially responsible industry, but a gradual increase in the range of 8% to 12% during the year, will be”, — said Alekperov in an interview with TV channel “Russia 24”.

The head of LUKOIL has explained that the increase in prices at the pump necessary for the company to compensate for increases in the tax burden, “not to lose the volume of production and not to create a deficit on the Russian market”.

Alekperov reminded that in 2016 LUKOIL did not dramatically increase the price of fuel and carried out an increase did not cover the growth of the excise tax.

“It was double the increase in excise duties — two roubles and two roubles four roubles. And the price for the year rose to sixty-ruble”, — he explained.

In January 2016 Alekperov predicted that the growth of retail prices for gasoline in Russia will amount to for the year is not more than 10%. Later the first Vice-President of LUKOIL Vladimir Nekrasov has warned that raising excise taxes on gasoline from April 1, 2016, may force the company to increase gasoline prices by about 2 rubles. per liter throughout the year.

“If we do not raise prices, the Economics of reprocessing virtually to zero. It is necessary to raise gasoline prices by 2 rubles for liter,” — said Nekrasov.

Later, the Federal Antimonopoly service (FAS) brought in the address of the first Vice-President of LUKOIL caution, noting that such statements by the heads of the oil companies can lead to violation of the Antimonopoly legislation.

Current Russian law “On protection of competition” prohibits physical persons, commercial organizations “to coordinate economic activities of economic entities”, which can lead to, for example, the establishment or maintenance of prices.

In early December of 2016, the head of FAS Russia Igor Artemyev said that in the coming decades, major jumps in the price of gasoline will not.

“I think that Russian consumers in the next is not something that years, but decades will not see any major jumps in the price of oil and gasoline. They will continue to lower inflation or to move with inflation but not above it,” — said Artemyev.