Gasoline will rise in price again

2021-01-13

Following the growth of oil prices in January 2021, wholesale fuel prices may rise, too. Since the beginning of December 2020, prices for AI-92 and AI-95 gasoline have increased by 8% – up to 48,000 and 49,000 rubles per ton of each brand, respectively. The rise was caused by the rise in oil prices on the international market, which makes it more profitable for oil companies to export oil and oil products, rather than sell them on the domestic market.

 

 

Fuel is getting yet more expensive
The rise in prices for fuels and lubricants in Russia occurs regularly and practically does not depend on the cost of oil on foreign markets. Oil prices rise? – oil products rise in price in Russia. In this case, the rise is explained by the fact that oil companies are trying to compensate for the losses incurred as a result of the fall in world prices. Oil is getting cheaper? – oil products are getting more expensive again but in this case it is explained by the fact that it is not profitable for oil businesses to sell them on the domestic market. Just like fuel, prices for other goods and services go up while wages remain the same. In any case, the owners of the oil companies will not bear losses –  the workers will, as always.
 
However, workers can change the situation. This requires more active and conscious behavior. In 2018, an increase in prices for fuels and lubricants led to an increase in a number of protests across the country. At the same time, the rise in prices took place on the eve of the government’s announcement of an increase in the retirement age, so the authorities hurried in advance and agreed with large oil companies to temporarily freeze prices. However, this did not help drown out the grumbling of workers, the result was massive protests in the summer and autumn of 2018. Yes, of course, back then the working people did not manage to significantly influence the implementation of the pension reform, but the prices for fuels and lubricants stabilized for some time.

Thus, the passivity of the masses gives the bourgeoisie the opportunity to get into the pockets of workers and working intelligentsia. Conversely, even an insignificant struggle bears fruit, leading to the fact that the capitalists have to moderate their appetites. It is easy to imagine the benefits of a more serious and intense struggle.