Irek Suleimanov: ‘RON95 consumption is growing, so we are asking to increase production’
The president of the Association of Oil Product Supply Enterprises of the Republic of Tatarstan on petrol prices, RON95 shortage and market prospects
Analysts note a steady increase in fuel prices in Russia. According to the Russian Statistics Service, petrol became 0.6% more expensive in April compared to March. The trend has been observed since the beginning of 2025. If we compare it with last year, the increase reaches 12.33%. In general, petrol rose in price by 11.13% last year, and this exceeded the overall inflation rate in the country — 9.52%. Although Tatarstan still has the cheapest fuel in the Volga region, President of the Association of Oil Product Supply Enterprises of the Republic of Tatarstan Irek Suleimanov discusses in his column for Realnoe Vremya whether we should expect a new price hike, the shortage of RON95 and how private gas stations are surviving on the market today.
“The increase in price is comparable to inflation”
It is difficult to calculate how much petrol will cost, but no sharp price hikes are predicted, at least in the near future. I can assume that there will be no critical increase in cost in the summer. But at the same time, we must understand that changes in fuel pricing policy are comparable to the growth of inflation — everything will be within this framework.
Today, high inflation is the biggest problem for both citizens and companies. Everything around us is becoming more expensive, and accordingly, our costs are growing. After all, a private gas station is just a gas station, we have neither refining nor oil production. Vertically integrated oil companies such as Lukoil, Rosneft, Tatneft and others are engaged in a full production cycle, starting with oil production, its refining and ending with an extensive network of gas stations — they have their own income from each activity. Of course, there is no easy business and it is difficult for large companies too, but they have several sources of profit at once, and private gas stations have fewer — only the direct sale of fuel, some related products and sometimes some services, nothing more.
Today, small companies supplying oil products are helped to survive only by entrepreneurship. It is certainly more difficult for owners of small gas stations to make a large control room where they could open a store. Perhaps there is no need for this, since there is no large flow of customers. Private owners hold promotions, give discounts — this is how they attract customers.
Recently, there has been a trend towards an increase in the share of sales of related products at gas stations, and this trend is also spreading to private enterprises.
Of course, every seller wants to sell more, make a markup and make money on it. However, not everyone can do it.
Only a large company can implement the approach when a gas station has its own factory or bakery. Of the private companies in Tatarstan, only Irbis has such experience.
“We need more RON95 petrol”
The Association currently includes over ten private gas stations, our activities are aimed at improving internal work and the industry as a whole. We are structurally part of the Russian Fuel Union and participate in the work of the Exchange Committee, share figures from the fields, and provide real information on the region to federal ministries.
We have written letters many times about the desire to increase the production of 95th petrol. Our experts have made a calculation and have seen that the consumption of this particular brand of fuel is increasing year after year. For a long time, the production of petrol in percentage terms was: 40% RON95 and 60% RON92. But now the consumption of RON95 petrol is growing, so we are writing about this, asking to increase the production of high-octane petrol.
Toll roads are currently being actively developed in the republic. For example, the M-12, which connects Moscow and Kazan, but it is difficult to call this direction promising for private companies.
It is enough to look at how much space for gas stations is sold for on the M-12 — these are sky-high figures!
In addition, strict conditions have been defined for entering this highway, but I think this is right. Not just gas stations are being built on high-speed roads, but entire complexes. Today, this is a huge investment. Few private gas stations can handle this. I don't know of any private gas stations on the M-12.
“Investing in development has become very difficult”
I would like the rules regarding the functioning of enterprises to change as rarely as possible, for example, tax legislation. Since this year, the profit tax has increased, now it is 25%. At the same time, everything around is getting more expensive.
In addition, very expensive borrowed money significantly complicates the process of doing business. It has become very difficult to invest in the development of your business. Let's say a private owner has one or two gas stations and wants to build a car wash, but they give a loan at 25-26% a year — that's very expensive!
Even in those days when they took out loans at 9-11%, they understood that this was a risk. Today this risk has become an order of magnitude higher.
After all, no one guarantees the profitability of a business. There are no programs for preferential lending to companies supplying oil products — this is not a social business. In addition, there are enough gas stations in the republic and there is no urgent need to open them.
