Gasoline prices in Russia are rising, what did President Putin say? Moscow's economy relies on oil

At a meeting on September 27 with members of the Russian government , President Vladimir Putin instructed the country's relevant agencies to react more quickly to the trend of rising gasoline and diesel prices.

Giá xăng dầu tại Nga tăng cao, Tổng thống Putin nói gì? Kinh tế Moscow 'cậy nhờ' dầu mỏ

Exterior view of the Trade Center building in Moscow, Russia. (Source: AFP)

President Putin noted that oil prices began to rise after Russia banned the export of gasoline and diesel. However, this measure - as the Russian Energy Ministry stated - was aimed at increasing domestic gasoline supplies to reduce prices.

“On September 21, we imposed a ban on gasoline exports. It seems that the market has fallen and on September 26, the retail price of 1 liter of AI-92 gasoline (was) 51.6 rubles (about 0.53 USD), while on September 21 it was 49.7 rubles (about 0.51 USD) - that is, the retail price is increasing. Measures have been taken but prices are still increasing,” he said.

According to the Russian President, diesel prices have also increased and agricultural producers are forced to go to neighboring regions to buy because “there is nothing discounted for them”.

Russian Deputy Prime Minister Aleksander Novak proposed that the government impose a protective tax on petroleum exports of 20-50,000 rubles per ton, and impose a complete ban on the export of petroleum purchased on the market without production.

In response, President Putin stressed: “We know why this situation happened!” He also proposed closer cooperation with oil companies so that they understand their responsibilities.

* Also on September 27, the European Bank for Reconstruction and Development (EBRD) forecast that the Russian economy will grow by 1.5%, contrary to the predicted 1.5% decline in the estimate given in May.

The EBRD explained in May that it expected Western sanctions against Moscow, in particular the imposition of a price cap on Russian oil exports, to curb the country's economic growth.

However, oil revenues have been supported by rising oil prices and Russia's ability to offset the impact of the price cap by exporting to new markets such as China and India.

"The country's economic activity remains strong, especially household consumption. The Russian economy will grow by 1% in 2024, the bank stressed, noting that the economic outlook next year will depend heavily on the development of the conflict with Ukraine and related economic sanctions."

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