Russian gasoline prices now 8% pricier than US

Russian petrol (gasoline) has become 8% more expensive than in the United States, where fuel prices have dropped below $3 per gallon for the first time since 2021 on December 8.

Whilst American drivers benefit from global market dynamics of the Trump administration, Russian motorists face a state-controlled pricing system that shields revenues but leaves consumers bearing the burden of higher costs.

Market analysts told Nezavisimaya Gazeta that falling US fuel prices stem from declining global crude oil prices, which account for up to half of fuel costs.

The situation was caused by stagnating demand and reduced travel.

Russian petrol prices are rising due to fiscal pressure, with the state taking up to 60% of the cost per litre in taxes and levies.

Russia also operates a so-called damper mechanism that makes fuel prices largely independent of global oil prices but prevents them from falling.

Yury Stankevich, deputy chairman of the State Duma's energy committee, previously proposed considering the possibility of introducing fuel subsidies for specific groups of Russian citizens following the same programme developed in Iran more than a decade ago.

The parliamentarian said it is impossible to deny the social significance of fuel prices.

The contrast comes as Russia's inflation continues to accelerate, with the central bank warning that price growth could reach 9% for 2024, well above its 4% target.

Fuel price increases compound household budget pressures as wages struggle to keep pace with rising living costs.