Gasoline Prices in Crimea's Sevastopol Jump 30% as Fuel Shortages Bite
Overview of Fuel Price Surge and Shortages in Crimea
Recent Price Increases and Causes
July 1 (Reuters) - Gasoline prices in Sevastopol, the largest city in the Russian-controlled Crimea peninsula, have jumped by 30% in the last week, state statistical agency Rosstat said on Wednesday, as the region grapples with fuel shortages.
In Crimea, which Russia captured from Ukraine and annexed unilaterally in 2014, Ukraine has attacked supply lines in what it says is a campaign to hit Russia's military effort.
Measures Taken by Authorities
To deal with the resulting fuel shortages, authorities there have suspended fuel sales to private motorists and reduced the time that public transport and cafes operate.
Comparison with Other Regions
In some Russian regions, retail gasoline prices have risen to some of the highest levels in Europe and to twice those of the United States, according to Reuters calculations.
While average gasoline prices in Russia stood at 72.38 roubles (93.4 U.S. cents) per litre as recently as last week, according to Rosstat, some stations in regions hit by shortages showed prices of $2.42 per litre or $9 per gallon, according to Reuters witnesses.
That matches the most expensive prices in Europe, including in Switzerland, where the price was up to $9.70 per gallon.
US Gasoline Prices Fall
US GASOLINE PRICES FALL
In contrast, prices in the United States fell last month. That marked a 15% drop from a peak in May when concern over the impact of the Iran war on oil supplies was at its height.
The national average price of gasoline in the United States fell by 14.1 cents a gallon over the previous week to $3.85 per gallon on June 22, according to price-tracking service GasBuddy. That translates into some 80 roubles per litre, according to Reuters calculations.
Government Response and Economic Impact
Putin's Statement and Regional Trends
President Vladimir Putin acknowledged on Sunday at a meeting with government ministers and other officials that the Ukrainian drone strikes had caused fuel shortages in various Russian regions, but said that Russia was dealing with them.
Rosstat also said that average gasoline prices in Russia rose by 1.6% last week, slowing from a record-high weekly rise of 3% in the week before. Prices even declined by 1.6% and 0.7% in the wider Moscow region and the city of Moscow respectively, it said.
In Sevastopol, where prices jumped by 30%, the price of popular AI-95 gasoline reached 129.68 roubles per litre.
Central Bank's Position
The Russian central bank said in the minutes to the June 19 meeting, published on Wednesday, it would take into account the impact of rising domestic fuel prices and their secondary effects at its next rate-setting meetings.
Exchange Rate and Reporting Notes
($1 = 78.1000 roubles)
(Reporting by Reuters; editing by Barbara Lewis)
