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Russian government proposes to adjust fuel damper – Novak

According to Deputy Prime Minister of the Russian Federation Alexander Novak, this can happen due to an increase in the coefficient, which has been lowered since September 1

MOSCOW, September 27. /TASS/. The Russian government proposes to adjust the damping mechanism by increasing the rate, which has been reduced since September 1, Russian Deputy Prime Minister Alexander Novak said at a meeting with Russian President Vladimir Putin.

"Currently, the government is proposing a variety of additional structural measures to secure long-term domestic market balancing and to establish economic incentives for the supply of oil products to the domestic market. First, the damper parameters must be adjusted in light of the current macroeconomic condition, including raising the coefficient, which has been decreased since September 1," Novak said.

He added that the Russian government proposed raising the protective duty on oil product exports from 20,000 rubles ($207.3) to 50,000 rubles ($518.26) per ton for resellers. "We will impose a protective duty, raising it from 20,000 to 50,000 rubles," Novak said, adding that he believes it is possible to totally ban exports of oil products acquired on the domestic market.

Novak noted that the Russian government anticipates that the fuel market changes announced by the government would have a long-term stabilizing effect. The steps will be implemented in the near future.

"The domestic market's price situation is stabilizing, and the implemented measures ensure the restoration and stable operation of the small wholesale segment, independent gas station stations, and agricultural producers. We will make decisions on the systemic measures that I mentioned in the near future, they will have a long-term impact on stabilizing the situation on the domestic market," he said.

The recent growth in gasoline stock prices in the past two days is a correction following a significant decline - current prices represent the true situation, he believes. "After a sharp drop, there has been a 1-2% correction in the past two days. This is normal, because the current levels attained on the stock exchange reflect the true situation," he explained.

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Vladimir Putin Alexander Novak

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