Russian government prepares new measures on fuel market, including taxes

Business & Economy September 22, 2023, 15:55

Anton Rubtsov noted that the Ministry of Energy anticipates that prices for gasoline and diesel will be reduced widely in Russia in the near future, both wholesale and retail at independent service stations

MOSCOW, September 22. /TASS/. The Russian government is developing a number of new systemic measures in the fuel market, some of which are fiscal in, head of the Energy Ministry’s oil and gas complex department Anton Rubtsov said on Friday.

"We are exploring options related to both duties and taxes that will allow us to [do this] through economic measures without violating the system that we have created," he explained.

"We understand that there is a pricing problem. It will soon no longer be as sensitive, and the product (gasoline and diesel) will be delivered at fair prices and in sufficient quantity, including to farmers," Rubtsov added.

In the future, the Russian government will also endeavor to improve the oil industry's taxation so that it can function efficiently in the face of high oil prices and the current ruble exchange rate. The adjustment is expected be finished by the spring of 2024.

Rubtsov added that the Ministry of Energy anticipates that prices for gasoline and diesel will be reduced widely in Russia in the near future, both wholesale and retail at independent service stations.

Russian presidential spokesman Dmitry Peskov said earlier on Friday that limiting gasoline and diesel exports from Russia is a timely measure, it will last as long as necessary to ensure fuel market stability. "The government took the necessary measures in a timely manner. How long will they last? As long as it takes to ensure market stability," he said.

Russia introduced restrictions on the export of gasoline and diesel fuel from September 21. The government introduced a number of exceptions. In particular, restrictions do not apply to supplies from Russia to the EAEU as part of indicative balances or protocols under intergovernmental agreements, export of fuel under intergovernmental agreements or as part of humanitarian assistance by government decision, transit of fuel, supplies to Russia’s military outside the country, as well as fuel to support the activities of Baikonur and Spitsbergen.

Restrictions on the export of gasoline and diesel will help curb "gray" exports, saturate the domestic market, and may also lead to an additional reduction in prices, an official from the Energy Ministry told reporters on Thursday.

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