The government has proposed new measures to stabilize fuel prices

The government has proposed a number of systemic measures to stabilize fuel prices. They will have a long-term impact on the domestic market, Deputy Prime Minister Alexander Novak said at a meeting between Russian President Vladimir Putin and the Cabinet of Ministers.

According to Novak, at Russian retail gas stations, the national average growth during the year was close to the inflation rate.

“It is clear that there are independent gas stations in the country, for which in the current situation the prices are now slightly higher than the inflation rate. For those belonging to vertically integrated companies, price restrictions at gas stations made it possible to keep prices at the inflation level,” the Deputy Prime Minister emphasized.

As for wholesale prices over the past two months, Novak noted an average increase in exchange prices for gasoline by 15%, and for diesel fuel by 30%. The growth, according to him, was influenced by several factors at once: the rise in world oil prices, the reduction of discounts on sales of the Russian Urals brand and the weakening of the ruble against the dollar.

“Of course, this, in turn, affected the budget, but at the same time we see that oil in ruble terms has increased one and a half times since the beginning of the year and exceeded 8,000 rubles in September. per barrel,” Novak emphasized.

The Deputy Prime Minister recalled the increase in exchange prices for fuel in the last two days by about 1-2% after a sharp drop. According to him, this is normal, since “the current levels that have now been reached on the stock exchange reflect the real situation.”

After the ban on the export of gasoline and diesel from September 21, there has been a decrease in exchange wholesale prices for motor fuel.

“Over the last week, since the 21st, they have decreased by an average of 20% for motor gasoline and by 16% for diesel fuel,” Novak clarified, adding that the Cabinet of Ministers expects further stabilization of the situation with prices for gasoline and diesel fuel on the wholesale fuel market.

In order to ensure long-term balancing of the domestic market, as well as to create economic incentives for the supply of petroleum products to the domestic market, the government proposed a number of additional systemic measures. First of all, adjusting the damper parameters taking into account the current macroeconomic situation. Novak clarified that we are talking about increasing the coefficient, which was reduced from September 1.

“This will allow us to compensate for the difference between the export alternative and exchange prices on the domestic market and increase the efficiency of supplies to the domestic market, saturate the domestic market with the necessary petroleum products,” the Deputy Prime Minister emphasized.

As a second measure, there is a restriction on gray exports to prevent “fuel being washed away from the domestic market by speculators.”

“This concerns, first of all, the increase in protective duties for those resellers who are not producers of petroleum products, but buy them for export. We will introduce a protective duty and increase it from 20,000 to 50,000 rubles,” Novak emphasized.

Novak also allowed a complete ban on the export of any petroleum products that were purchased on the domestic market and were not produced.

“That is, we will also limit the possibility of speculative export supplies,” explained the Deputy Prime Minister.

He also noted the need to control, together with the Federal Antimonopoly Service (FAS), the level of markups at independent gas stations: if stock prices fall, prices there should also fall.

In addition, Novak said that the Cabinet of Ministers is exploring the possibility of subsidizing the cost of fuel oil supplied to certain regions with a high share of its use in the energy sector. First of all, we are talking about the Murmansk region and the Kamchatka region. After the increase in exchange prices, the cost of fuel oil there exceeded the average level of last year.

“The price situation in the domestic market is stabilizing, the operational measures taken ensure the restoration and stable operation of the small wholesale segment, independent gas station networks, and the work of agricultural producers. We will soon make decisions on all systemic additional measures. This will have a long-term impact on stabilizing the situation on the domestic market,” Novak concluded.

Putin stressed that measures to stabilize the fuel market are necessary for consumers.

“The price is rising at retail. Measures have been taken and prices are rising. What happens there in other links is of little interest to the consumer. The consumer needs results,” the president added (quoted from RIA Novosti).

The market price of fuel is also influenced by the seasonal factor – work in the agricultural sector, Putin noted.

The President instructed the Cabinet of Ministers to strengthen interaction with energy companies and convey that responsibility for price surges lies with them.

“We know why this is [рост цен на топливо] is happening. And in connection with oil prices, they understood what would happen next, this is not the first time. Prices are rising, companies want to maximize profits by sending [топливо] for export. <...> We need to work more closely with companies so that they also understand their responsibility,” the president emphasized.

The head of state also noted that after the rise in fuel prices in the country, the supply pattern needs to be changed. First, gasoline should go to the domestic market, and only then for export, Putin explained.