The oil market in Russia is bracing for a 15% price hike in April due to the war in Iran
Motor oil manufacturers in the aggressor country have warned of another price hike for their products in April, ranging from 5% to 15%.
The companies cite market destabilization in the petroleum products sector, caused by the military conflict involving Iran and the U.S. president, as the main reason for the price hike.
Russian companies are already sending letters to partners with new price lists, explaining the situation as a critical dependence on imported components.
The biggest problem remains the shortage of additives, which have historically been produced by a limited number of companies in Europe, the U.S., and China.
Disruptions in supply chains and the depletion of inventories due to hostilities in the Middle East have led to a sharp increase in production costs.
United Petrochemicals confirmed that a similar crisis is also being observed in the markets for antifreeze and other automotive chemicals.
“All suppliers, including the largest domestic oil companies, are closely monitoring the situation and promptly adjusting prices in line with fluctuations in global market prices,” note representatives of the industry in the occupying country.
Market experts acknowledge that the Russian economy remains vulnerable to global fluctuations in oil and petroleum product prices.
Amid rising costs, the local antitrust agency may launch investigations, though this is unlikely to halt the objective rise in the cost of car maintenance.
To curb domestic prices, the Russian Ministry of Energy is considering a temporary ban on oil exports.
However, such measures only underscore the depth of the crisis and the aggressor’s inability to ensure the stability of its own market amid global isolation.
As a reminder, rising oil prices due to the war in Iran will not save the Russian Federation’s budget from a deficit.
Also, high oil and gas prices: who stands to gain from the war in Iran.
