Gasoline rivers run dry

The gasoline crisis that began in the central regions of Russia and reached as far as Moscow has spread to St. Petersburg. Presently the situation in the city has not yet reached such a sharp level as in Moscow and the central regions: in Petersburg ther

<BR>The gasoline crisis that began in the central regions of Russia and reached as far as Moscow has spread to St. Petersburg. Presently the situation in the city has not yet reached such a sharp level as in Moscow and the central regions: in Petersburg there are not yet kilometer-long lines at gas stations. Difficulties with buying fuel are for now mostly noticeable on the wholesale market. In the middle of August Petersburg wholesalers began to have trouble buying premium gasoline 92. A defecit had overtaken the market. As a result, gasoline prices grew at every branch of the commercial chain. For wholesalers the rates rose by 100,000-150,000 rubles per ton of fuel. At city gas stations fuel prices increased for the second time in one month (the reason for the first increase was the rent increase for gas stations). On average the increase in retail costs for fuel totaled 50-100 rubles per liter of gas. Despite the price increase, the sales volume of gasoline increased in August. "Over the last few days of August we sold all of our spare gasoline which we had. This is the first time that this has happened: usually there is 5-10% of our gasoline stock left over each month that carries over into the next month", said the department leader of Lukoil-SPb. "Premium gasoline 92, as opposed to the higher quality 95, we buy in Russia, and now it has become very difficult to get", said the regional manager of retail gasoline trade of Neste-SPb, Juxa Paavilainen. Market participants cite different reasons for the rise of the fuel crisis in the region: some connect it with high fuel prices in the south of Russia as a result of which the suppliers send all their gasoline there; others with the fact that some of the production lines at the Kinef gasoline production plant are closed. However, the majority of wholesalers are of the opinion that the market situation was influenced by the increase in gasoline prices outside of the Russian borders. "The prices abroad increased and a lot of gasoline was exported", said a Lukoil-SPb representative. The majority of city traders say that the high octane gasoline prices will continue for another month. During this period the retail prices of gasoline could increase even more.<BR>