Prices for the gasoline group may increase by 1.5-2 soms per liter in the fuel and lubricants market of Kyrgyzstan in May. The Association of Oil Traders presented such a forecast.
To date, the Russian market of petroleum products is experiencing an increase in wholesale selling prices for the gasoline. Since the beginning of the year, the cost of gasoline has increased by almost 35 percent. The increase in selling prices of petroleum products at Russian refineries is due to a reduction in oil production by OPEC + member countries, in particular Russia. OPEC+ member states have decided to cut production by 1.6 million barrels per day from May 2023. Oil production has sharply decreased after the introduction of sanctions by Western countries against the Russian Federation. This led to a reduction in the production of petroleum products and an increase in selling prices at refineries.
«In addition, many Russian refineries carry out scheduled preventive maintenance work in the spring, which leads to a reduction in supply on the market and an increase in cost. In particular, the large supplying plants Orsk Oil Refinery, Perm Oil Refinery, which supply oil products to Kyrgyzstan, have been under repair since April. According to the schedule, repairs are planned at the large Omsk Oil Refinery starting from June. This will also lead to an increase in selling prices for petroleum products. At the same time, oil traders intend to continue the policy of smoothing the rise in prices and avoiding sudden changes,» the oil traders explained their forecast.
Selling prices for diesel fuel at Russian refineries have remained consistently high since the beginning of the year. This is due to the presence of a significant export alternative towards China, India, and Mongolia.
Since the beginning of the year, key players in the fuel market have reduced the cost of fuel and lubricants at gas stations by 7-8 soms per liter for the gasoline group, or by 13 percent. The price of diesel decreased despite the high wholesale prices at Russian refineries. Oil traders took this step because of the start of spring field work.
