Key events
In May, the prices of petroleum products increased twice (on May 21 and May 28) by one Belarusian cent each time. Consequently, by the end of May, diesel fuel cost 2.38 rubles ($0.75), A-92 gasoline cost 2.28 rubles ($0.718), A-95 gasoline cost 2.38 rubles ($0.75), and A-98 gasoline cost 2.6 rubles ($0.82). A price increase for June has also been announced. The dynamics of petroleum product prices are discussed in the issue’s topic.
The heads of the Ministry of Energy of Belarus and the Ministry of Foreign Affairs of Hungary signed a memorandum on deepening cooperation in nuclear energy and a roadmap for cooperation between the nuclear power plants of Belarus and Hungary.
Gergely Jakli, the CEO of Paks II Ltd., emphasized that the Paks II Nuclear Power Plant, currently under construction, is interested in involving Belarusian builders in the work at the site.
Yuri Shmakov, the First Deputy General Director and Chief Engineer of Belenergo State Production Association, stated that today’s meeting is a key moment in further establishing mutually beneficial cooperation between the parties. Belarusian and Hungarian specialists will share best practices in both equipment operation and personnel training.
Belarus ratified the protocol on amendments to the intergovernmental agreement with the Russian Federation on cooperation in the construction of a nuclear power plant dated March 15, 2011, signed in Minsk on November 2, 2023. According to the protocol, the two-year warranty period for the operation of equipment, as established by the agreement, can be extended for a longer period. A longer warranty period can be set for certain equipment. Additionally, the agreement includes a provision that the procedure for determining the price of nuclear fuel and the conditions for its supply are agreed upon by the competent authorities of Russia and Belarus.
Specialists from the fuel and catalytic production of OJSC «Mozyr Oil Refinery» optimized the technological scheme to produce winter diesel fuel. Preliminary results showed an increase in the yield of the target diesel fraction by 5% with a corresponding decrease in the yield of non-target products (gasoline distillate and liquefied gas).
А reduction in the severity of the temperature regime in one of the sections and, consequently, an extension of the catalyst system’s service life, a decrease in fresh hydrogen consumption, and a reduction in the consumption of cetane-improving additives for the production of commercial diesel fuel.
The enterprise «MINGAZ» launched gas at the third stage of looping the high-pressure gas pipeline from «Vostochnaya» gas distribution station (GDS) to «Severnaya» GDS in the ring gas pipeline of Minsk.
Statistics and data
Electricity consumption by the population continues to grow at a rate of about 40% per year and reached 372.4 GWh in the first quarter 2024. Accordingly, the energy consumption plan for electric heating for 2025 may already be met by the end of this year. Electric heating consumption growth via special low tarif but also increasingly burdens the power system financially. To stop the growth of costs, it will be necessary to increase the tariff, which will result in people who have already switched to electric heating being trapped and forced to pay more for heating than if they were using gas or biomass.
In such a situation, a large number of consumers may find themselves affected. From 2019 to the end of the first quarter of 2024, 112,000 applications were submitted, of which 89% were approved. Thus, nearly 100,000 households have already switched to electric heating. In addition to individual requests for the installation of electric heating equipment by the population, construction companies are building multi-apartment residential buildings with electric heating. Since 2021, 1.3 million square meters of such buildings have already been constructed.
The number of electric vehicle charging stations has reached 1200 units. The volume of electricity consumption for electric transport has reached 7.5 GWh and doubled over the year 2024. The urban bus fleets in Zhodino and Shklov have been converted to electric buses. The next similar project is planned for implementation in Novopolotsk.
Over 5.64 billion cubic meters of gas were supplied through the gas distribution system. The implementation of liquefied gas amounted to 9.7 thousand tons. The level of natural gas apartment gasification in the Republic of Belarus is 83.5 percent, including 50.3 percent in rural areas. The length of gas pipelines exceeds 67.7 thousand kilometers. In January-March 2024, 170.6 kilometers of gas pipelines of various categories were put into operation, 2.3 thousand apartments were gasified with natural gas, and 962 apartments were switched from liquefied gas to natural gas consumption.
As of May 28, 2024, the total electricity generation of the Belarusian Nuclear Power Plant reached 30 TWh.
Statements
«In connection with this, we can say that we have discovered a new oil field,» the Minister of Natural Resources and Environmental Protection Sergey Maslyak stated.
The Geological Center conducted drilling work on well No. 1 «Zaozeryevskoye» in the territory of the Oktyabrsky district of the Gomel region. The well’s depth is 4.2 thousand meters.
«Thanks to the application of acid-frac technology at depths of 4053 meters and 4069 meters, an inflow of oil has been discovered,» said Sergey Maslyak. He noted that the well’s flow rate is 600 liters per day, which is a good result.
«Today, the main oil reserves are located in the Gomel region — 98% of oil is extracted here,» emphasized the minister.
Topic of the Issue: Petroleum products prices
In May 2024, the concern Belneftekhim raised prices for petroleum products twice. Each time, the price of each type of fuel increased by 1 Belarusian cent ($0.3 cents).
The graph shows fluctuations in the price of petroleum products. Sharp fluctuations in the dollar exchange rate in 2011 (the exchange rate tripled throughout the year) also led to a sharp jump in petroleum product prices (in the first half of the year, the official exchange rate did not increase, but enterprises were already raising prices to compensate for the difference between the official and actual exchange rates). However, after a sharp change in the official exchange rate, fuel prices sharply decreased in dollar terms. Attempts to quickly increase prices led to protests. After this, the price regulation mechanism was changed. Currently, prices change in small increments (the minimum increment is 1 cent).
The price analysis shows that after a significant price growth, there is usually some decrease. This has been the case almost every time since 2018.
A comparison of prices for petroleum products with world oil prices and delivery prices in Belarus shows that price changes occur relatively synchronously. Starting from the fall of 2022, prices for petroleum products decreased in dollar terms. Currently, world oil prices are relatively decreasing, however, prices in Belarus are starting to rise, with a planned increase of 5%. Some price increases at the moment appear to be the result of normal price regulation system operation. However, world oil market prices started to rise at the beginning of the year, while gasoline prices are only beginning to rise at the end of May. This may be due to some temporary lag between global oil prices and the prices of oil supplied to Belarus.
