Government Purchases of Gasoline in Russia Exceed Prices in the EU

In Russia, the public sector has increased its purchases of motor fuel amid shortages and the authorities' permission to buy gasoline at market prices. Actual contract prices in some regions and Crimea already exceed the average prices in EU countries. Since August 7, the government has canceled the formula used by the antimonopoly service to determine the cost of government contracts, allowing budgetary institutions to enter into agreements based on direct offers. From August 10 to 17, the total amount of fuel tenders reached 9.2 billion rubles, which is double the amount from the previous week and nine times higher than the same period last year. Regional authorities are instructing farmers and state companies to purchase fuel at any cost due to the risk of worsening conditions in the fall. The government has also allowed the production of low-quality gasoline with high sulfur content, which is causing a rush among consumers. Actual prices in auctions significantly exceed the official data from Rosstat. For example, in the Magadan region, AI-92 gasoline was purchased for 278.3 rubles per liter, which is three times more expensive than the official statistics. In the Krasnoyarsk region, diesel fuel for the airport...

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