TYUMEN, September 20. /TASS/. The introduction of an export duty on fuel will help fill the market with petroleum products in the short-term but lead to a fuel shortage in the future, Gazprom Neft CEO Alexander Dyukov told reporters on the sidelines of the TNF Industrial Energy Forum.
"As a mechanism, a protective duty on petroleum products in the short term may initially cause a surplus of fuel on the domestic market and a decrease in wholesale prices. But as a consequence, refineries will see a decrease in efficiency and, accordingly, a decrease in refining volumes," Dyukov said.
"As a result of these kinds of measures, if they are not calculated accurately enough, they can lead to a shortage of motor fuels on the domestic market. It is important not to upset the refining process," he added.
Dyukov noted that the government is currently discussing several potential options to stabilize the Russian fuel market. The head of Gazprom Neft believes that possibly limiting the number of fuel exporters and creating a corresponding list of the players here is viable, but the authorities need to do a thorough analysis before making a final decision.
"If they decide to form such a list, we will decide on each enterprise [refinery] individually. In any case, the domestic market always remains the priority for us," he emphasized.
About market situation
Earlier, a TASS source in the government said that the Cabinet is considering two options to stabilize fuel prices: a complete ban on the export of petroleum products for a certain period to saturate the market, as well as increasing the export duty to $250 per ton on petroleum products. Moreover, this payment will be returned to those bona fide exporters who supply the domestic market with the percentage of petroleum products determined by government decree.
Deputy Prime Minister Alexander Novak said that the government is working on a number of measures that will stabilize the situation on the national fuel market. For example, it is planned to compile a list of companies that will be allowed to export fuel. According to the Deputy Prime Minister, there is currently no shortage of supply on the Russian fuel market, and the stock exchange is balanced. However, the authorities would like to prevent significant fluctuations in fuel prices in the country.
The Energy Ministry has submitted to the government and the presidential administration a draft decree banning "gray" fuel exports - only refineries will have the right to export. The document is going through the final stage of approval.
About forum
The TNF Industrial and Energy Forum (formerly the Tyumen Oil and Gas Forum) is the main industry platform in Russia, bringing together suppliers and customers to find and implement joint solutions in the energy sector. The forum takes place from September 18 to 21 in Tyumen. It is expected to receive more than 10,000 guests. The forum brings together more than 80 events, 700 representatives of oil and gas companies. TASS is the forum’s general information partner.