PRICE HIKES FAIL TO EASE RUSSIAN WOES

Sharply higher prices decreed for early January by Moscow for crude, refined products, and natural gas have failed to ease the Russian republic's fuel shortages.

In many parts of Russia and other areas of the new Commonwealth of Independent States, the fuel crunch appears to have intensified.

Even the military, which formerly could count on plentiful fuel supplies while the civilian economy was strapped for energy, is being forced to curtail training because of reduced product deliveries.

Unconfirmed reports in Moscow say Russia may lift price controls on oil and coal no later than Apr. 1. Some Moscow economists believe freeing prices could provide a beneficial shock to depressed economies of C.I.S. members.

Indications that the former U.S.S.R. was heading for a worsening fuel crisis became more apparent last November when the Russian government sharply curtailed oil exports to other Soviet republics and trimmed deliveries to foreign customers as crude production plummeted. This action came as many areas of the nation were experiencing energy deficits.

One of the few bright spots in the C.I.S. energy situation is that predictions of colder than average weather did not come true during January in much of the commonwealth. If the forecasts had been accurate, Moscow officials assert, the consequences could have been disastrous.

PRICES JUMP

In early January, Russia allowed prices paid to its oil producing associations to quintuple. It permitted higher prices to apply to industrial and individual consumers.

Some of the 11 other C.I.S. republics were unprepared to deal with enormous hikes in the cost of Russian crude for their refineries or for the huge jump in prices for Russian petroleum products and other fuels.

Before the U.S.S.R.'s breakup, Russia sold oil to other Soviet areas at far less than world prices. When the artificially low crude and product prices were allowed to skyrocket early this year, other commonwealth members strongly protested.

Moscow officials say Russia cut its oil exports in November and authorized higher energy prices in January "for entirely understandable reasons."

Fuel was in such short supply in much of the U.S.S.R. late last year the Soviet Customs Committee decreed that only 20 1. of gasoline could be taken out of the nation by motorists without paying duty.

OTHER REPUBLICS

Russian officials concede they had not fully anticipated the severity of disruptions in other republics that had moved more slowly toward a freer market for fuels.

On the wholesale level, Russia authorized prices for crude, natural gas, associated gas, condensate, and energy coal to increase as much as 400%. Motor and boiler fuels, as well as kerosine, could rise 380%, coking coal 700%, and electricity 300%.

Maximum price hikes for Russian consumer goods included 300% for gasoline, 200% for diesel fuel, 180% for illuminating kerosine, 200% for liquefied petroleum gas, and 400% for pipeline gas.

In Kazakhstan, wholesale prices for petroleum products, natural gas, coal, and electrical power were allowed to rise 300-700%. Retail price hikes for individual Kazakh consumers were limited to 180-400% for gasoline, diesel fuel, household gas, coal, and wood.

UKRAINE WORST OFF

Ukraine apparently has been the hardest hit by price increases for Russian crude.

Izvestia called the petroleum products situation in Ukraine's Donets industrial basin "very alarming" because the big Lisichansk refinery is operating at only half capacity. The area's plight has been made worse by failure of the Grozny refinery to deliver about 500,000 bbl/month of diesel fuel by pipeline.

Efforts by Ukrainian fuel industry officials to negotiate with Grozny for help in relieving the "catastrophic" diesel fuel shortage in the Donets basin failed.

In Kiev, Ukraine's capital, motorists queue for many hours to get their tanks filled, Moscow News reported. City news stands receive only Ukrainian papers because Kiev's official press distribution agency says it doesn't have enough fuel to deliver Moscow dailies.

MILITARY FUEL

Meanwhile, Izvestia reported commonwealth warships were generally limited to exercises close to home ports. Some naval vessels were forced to return from distant areas of the world.

Off the West African coast, C.I.S. warships were forced to pay in dollars for fuel obtained from commonwealth fishing vessels they were protecting.

Compared with first quarter 1991, the navy was allocated only 65% as much aviation fuel, 70% as much motor gasoline, 66% as much diesel fuel, and 95% as much heavy boiler fuel. Baltic Sea and Black Sea fleet commanders complained they received no fuel at all from Ukrainian and Lithuanian refineries.

Naval aviators were "literally grounded," and shore based personnel suffered from lack of heat in buildings, Izvestia said.

Diesel fuel deliveries to the Black Sea fleet were only 18% of requirements, fuel oil deliveries only 23% of what was needed. In the Baltic Sea, 19% of boiler fuel needs were met, but no other petroleum products were delivered late last year.

Armed forces commanders in late January appealed to the Russian energy ministry for help in organizing shipments of petroleum products directly from Russian republic refineries to the commonwealth's army and navy so military operations could continue.