The Ministry of Finance blamed speculators for rising fuel prices

The increase in prices for gasoline and diesel fuel in July – September 2023 was caused by the actions of reseller companies supplying petroleum products for export; it is not entirely correct to associate it with the adjustment of the fuel damper, State Secretary – Deputy Minister of Finance Alexey said in an interview with Vedomosti Sazanov.

He recalled that the methodology for calculating damper payments to oil companies was adjusted from September 1, and the actual reduction in payments according to the new formula should have occurred only in October. At the same time, fuel prices began to rise in price already in July, and in August prices began to rise rapidly, when refineries received compensation for the damper in full.

“To link the increase in price with changes in the damper, in my opinion, is not entirely correct. First of all, we need to look at the processes that took place in the domestic market,” Sazanov said.

The Deputy Head of the Ministry of Finance explained that, for example, in January – July 2021, the volume of diesel was declared to be 21.1 million tons to obtain a damper, and for seven months of 2023 – 28.7 million tons, which should mean a 30% increase in supply in the domestic market.

But in fact, part of the volumes that refineries sold on the domestic market and for which they received payments were purchased by resellers and exported abroad.

“In my opinion, this is the main reason for the rise in prices, and not the adjustment of the damper,” Sazanov emphasized.

In his opinion, the reseller companies are not associated with the refinery. “These are just speculators. That is, companies that were created exclusively for export operations. <...> When the dollar exchange rate quickly went up, profits from export operations increased sharply, which naturally provoked the activation of resellers,” the official noted.

As Vedomosti wrote, in the summer of 2023 in Russia, against the backdrop of a sharp increase in prices for wholesale petroleum products, the situation in the motor fuel market destabilized. According to SPbMTSB, the cost of AI-92 and AI-95 gasoline began to rise in April with the start of the spring refinery repair season. Quotes reached a new historical maximum at the end of July, and in August they continued to grow after a slight pullback. The price of AI-92 set a record on September 18 at 70,508 rubles/t, and AI-95 on September 7 at 76,876 rubles/t. Diesel fuel began to grow on the stock exchange at the end of July and has also periodically updated its record since mid-August. The last one was registered on September 19 – 75,036 rubles/t.

Fuel damper payments to oil companies have decreased since September 1 due to the introduction of a reduction factor of 0.5 into the calculation formula. The decision on this was made in July. But already at the beginning of October, the government press service reported that from October 1 it was decided to restore the previous formula for calculating payments.