**Russia to Convene Emergency Meeting on Soaring Fuel Prices**
The Russian government is taking swift action to address the skyrocketing fuel prices that have left many small gas stations facing losses. According to reports, an emergency meeting will be held with top oil companies on August 14 to discuss measures to keep retail gasoline prices from outpacing inflation.
At the helm of these talks will be Russian Deputy Prime Minister Alexander Novak, who oversees energy policy in Russia. The move comes as gasoline prices have increased by a staggering 7% since early August, 32% since the start of summer, and 47% since January. In fact, Ai-92 gasoline has risen by a whopping 34% since late December, reaching its highest level since autumn 2023.
The price hike is largely attributed to Russia’s sweeping ban on gasoline exports, which was imposed in an effort to stabilize the domestic market. However, the surge in prices also coincides with Ukraine’s continued long-range drone strikes on Russian oil refineries, a key source of revenue for Moscow’s war efforts.
The situation has become increasingly dire, with recent attacks forcing the Ryazan refinery to halve production and shut down the Novokuibyshevsk facility entirely. Furthermore, an oil refinery in Russia’s Saratov Oblast owned by Rosneft was forced to halt oil intake after a strike sparked a fire on August 10.
**The Human Cost of Soaring Fuel Prices**
While the Russian government scrambles to address the issue, small gas stations are bearing the brunt of the price hike. According to sources, shrinking reserves on the independent market have pushed prices to levels that cause losses for these businesses, which must buy fuel on the exchange.
“This is a classic case of policy failure,” says Tim Zadorozhnyy, a news editor at The Kyiv Independent. “The government’s efforts to stabilize the domestic market through export bans have only led to higher prices and more suffering for ordinary citizens.”
**A Deeper Analysis**
The crisis highlights the deepening economic challenges facing Russia as it continues to wage war in Ukraine. As fuel prices continue to soar, the Russian people are left to bear the brunt of the costs.
“The fact that small gas stations are struggling to stay afloat is a symptom of a larger problem – the government’s inability to manage its economy effectively,” says Zadorozhnyy.
In conclusion, Russia’s emergency meeting with oil companies on August 14 marks a necessary step towards addressing the fuel price crisis. However, it remains to be seen whether these efforts will be enough to alleviate the suffering of ordinary citizens and stabilize the domestic market.
Read More @ kyivindependent.com
