OREANDA-NEWS. The government of Belarus has prepared a resolution to raise the prices of automotive fuel by 5% on average, a source in the profile ministry told.

The rise in prices of automotive fuel was considered in the context of the government's proposal to raise the excise tax on diesel fuel by 70%, automotive petrol - 45%, the source said.

After negotiations the parties decided in favour raising prices of automotive fuel by 5%, he said.

The proposal needs to receive a go-ahead from the president's administration.

Since early 2013 the prices of automobile petrol available through a network of filling stations have risen only once (by 5% on average on January 16, 2013). Belarus' state-run petrochemical industries concern Belneftekhim said the move was prompted by a 20% increase in excise taxes on petroleum products in 2013, a fourfold rise in railway cargo tariffs and the pressure to catch up with the price level of the Customs Union.

In February the government approved a move to raise the prices of automotive fuel by approximately 5%. The only thing remaining was to set the date of the price hike, however after the general meeting of the Cabinet of Ministers on March 1 the commission gave another thought to the proposal and decided not to raise petrol prices in the near future. Belarus' President Alexander Lukashenko, who attended the meeting of the Cabinet, challenged the Government and the National Bank of Belarus (NBB) to adopt a hard-line stance on price control in order to restrain inflation growth.

As previously reported, Belarus raised automobile petrol prices four times in 2012: on March 14 (by 5%), April 11 (by 5-12%), June 8 (by 5%), October 3 (by 4.5-6.3%).