Pricing imbalances in the motor fuel markets in Russia

Ivan Leonov ()
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Ivan Leonov: Department of Economics, Lomonosov Moscow State University

No 67, Working Papers from Moscow State University, Faculty of Economics

Abstract: Since 2019, Russia has implemented quasi-directive pricing in the retail gasoline and diesel fuel markets, and a "big tax maneuver" has started to be implemented. This study aims to assess the impact of the current pricing system for gasoline and diesel fuels on the competitive environment in retail markets. As part of the study, four econometric models were built using the weighted least squares method and using stationary differences instead of stationary series to identify the impact of the "big tax maneuver" on domestic gasoline and diesel prices. Current pricing imbalances are leading to a permanent increase in retail fuel prices, which inevitably leads to an increase in market concentration in the gasoline station segment. There is no steady progress in the institutional environment in the motor fuel market due to increased regulatory uncertainty and expected negative consequence.

Keywords: competition policy; oil industry; price regulation; gasoline pricing; diesel fuel pricing; stock exchange; taxation of the oil industry; big tax maneuver; damper (search for similar items in EconPapers)
JEL-codes: H32 L11 L42 L81 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2024-05
New Economics Papers: this item is included in nep-cis, nep-com, nep-ene, nep-ind and nep-tre
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