Price Formation Mechanism and Reasons for the Increase in the Cost of Motor Fuel in the Context of Economic Security

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Abstract

The purpose of writing this article is to conduct a study in the field of identifying the main reasons for the increase in the cost of motor fuel in Russia in the context of economic security and to make a comparative analysis of the cost of fuel in key countries. The theoretical significance of this article is the analysis and systematization of scientific research related to the mechanism of price formation and the reasons for the increase in the cost of motor fuel in the context of economic security. The practical significance of the presented study is that the main reasons for reducing the consumption of motor fuel by the population and the decrease in oil refining in Russia in the context of economic security are established, as well as mechanisms are proposed to neutralize this phenomenon and reduce the cost of motor fuel, which will improve the pricing mechanism and identify reasons for increasing the cost of motor fuel in the context of economic security. The conclusions obtained in the course of the study are as follows: scientific research related to the mechanism of pricing and the reasons for increasing the cost of motor fuel in the context of economic security is systematized, the features of its development in modern conditions are disclosed; recommendations are proposed for the development of legal norms for establishing domestic prices for the specified product, which will contribute to the activity of small and medium-sized businesses and citizens to engage in entrepreneurial activities in the context of economic security; to ensure a balance of interests of the individual, society and the state, introduce quotas for oil companies to supply oil to Russian oil refineries in the context of economic security, in case of violation of the conditions of domestic supplies, provide for severe administrative measures in the form of multiple fines and deprivation of benefits during oil production, as well as introduce export oil export duties and quotas in the context of economic security; revise the terms of the tax maneuver towards stabilizing the domestic market and providing benefits to companies operating in Eastern Siberia, in the conditions of the Far North and companies producing super-viscous oils, while the main condition should remain the interests of the state as the owner of the subsoil and responsible for the socio-economic situation in country in the context of economic security, and not the interests of investors, while it is possible to use the experience of Norway, where tax conditions are established that allow the main income to be directed to the state budget and develop various sectors of the economy; with an annual increase in motor fuel prices, proceed not only from the interests of oil companies, investors, banks, but also take into account the interests of citizens who have low incomes, which does not allow them to actively engage in economic activity in the context of economic security; to stabilize oil production and guaranteed supplies of oil for domestic consumption in the context of economic security, it is necessary to take measures (legislative, managerial) to develop competition, which will allow the revival of small and medium-sized businesses in the context of economic security; it is proposed to do this in an indisputable manner to withdraw from vertically integrated companies the fields where they stopped producing oil due to unprofitability and redistribute them among small and medium-sized companies in the context of economic security, it is possible in parts where they can continue production (US experience) . There is also the Russian experience in the Republic of Tatarstan, where in a similar way they achieved an increase in oil production in the context of economic security.

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About the authors

Rais R. Alaberdeev

Institute of Public Administration and Management of the Russian Academy of National Economy and Public Administration under the President of the Russian Federation

Cand. Sci. (Econ.), Associate Professor; Program Director Moscow, Russian Federation

Vladimir F. Gaponenko

Institute of Public Administration and Management of the Russian Academy of National Economy and Public Administration under the President of the Russian Federation; Academy of Management of the Ministry of Internal Affairs of Russia

Dr. Sci. (Econ.), Professor; Professor of the Department; Professor Moscow, Russian Federation

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