FAS warned companies in Moscow not to allow fuel price increases

The FAS sent warnings to Moscow’s largest oil companies to prevent an unreasonable increase in gasoline prices. About it reported in the FAS press service.

“The capital’s antimonopoly agency sent warning letters to the largest oil companies engaged in the retail sale of motor fuel to prevent increases in prices for the fuel they sell,” the statement said.

In case of an unjustified increase, antimonopoly measures will be taken against companies, the FAS warned.

They noted that the measures taken by the government “allowed for the formation of sufficient fuel reserves at refineries and tank farms of petroleum product supply enterprises.” In this regard, consumers can be provided with the necessary amount of fuel, and prices in the wholesale and retail segments can be reduced.

The destabilization of the situation on the motor fuel market began against the backdrop of a sharp rise in prices in the wholesale market. Quotes reached a new historical maximum at the end of July, and in August they continued to grow after a slight pullback. Against this background, the cost of petroleum products at retail also began to rise. According to Rosstat, in January–August, gasoline prices of all brands rose by 7.4%, with official inflation at 3.7%.

September 21 Russian government introduced a complete indefinite (“until the situation stabilizes”) ban on the export of diesel fuel and gasoline. Exceptions for export in the resolution are made for supplies to the EAEU countries. As experts interviewed by Vedomosti noted, the authorities took this step because the verbal interventions that were previously used to regulate the fuel market ceased to work, and also because of the resonance around this topic. Such a measure, as noted, will have a short-term effect, but will not help solve the problem in the long term.

October 6th were accepted additional measures, including the removal of restrictions on the export of diesel delivered to seaports by pipeline, provided that the company supplies at least 50% of the fuel produced to the domestic market. The decision was made to prevent overstocking of storage facilities, while the measure will allow maintaining the utilization of the refinery, explained Deputy Prime Minister Alexander Novak.