Gas stations are closing: Novak was informed about the plight of independent gas stations

Some independent gas stations are being closed, as the gasoline trade has become unprofitable. This was announced to Deputy Prime Minister Alexander Novak by the Russian Fuel Union (RTS).

RTS pointed to two main factors, Interfax writes. The first is the wholesale price, which sets records on the stock exchange, and in some regions already exceeds the cost at the gas station.

"Taking into account the overinflationary growth of operating costs, Russian Railways and utilities tariffs, increased credit and tax burden, the profitability of gasoline retail has become deeply negative," RTS reports.

Also, the union is talking about the widespread disruption of the delivery of stock gasoline.

"The volume of shipment of the purchased goods is significantly lower than the concluded transactions, and the terms of shipment are increased to 1.5−2 months. Taking into account the prepayment conditions for the purchase of an exchange-traded commodity, these factors lead to the leaching of working capital and an increase in the credit burden. At the same time, shipments by oil companies to their own sales units are carried out in full to the detriment of the supply of exchange—traded goods purchased by independent buyers,"RTS said.

RTS drew attention to the fact that in some regions there are already disruptions in the supply of gasoline, and negative profitability has forced some of the gas station networks to close. And independents make up about 60% of all gas stations in the country, the union added.

RTS offered Alexander Novak to ensure the fulfillment of small wholesale and exchange sales, as well as the timing and volume of shipment for exchange transactions.

"In addition, when targeting the growth of retail prices for motor fuel, instead of the consumer price index, it is proposed to use a composite inflation index that takes into account the growth of tax and credit burdens, as well as a number of factors that make a major contribution to the growth of gas station operating costs and characterized by superinflationary growth," Interfax writes.

As EADaily reported with reference to Kommersant, unscheduled repairs of the refinery led to a shortage of gasoline in some regions of the country. The government is preparing to temporarily stimulate gasoline imports and allow the use of an octane-boosting additive.