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Russian government adopts new systemic policies aimed at stabilizing fuel market

Moreover, Russia is lifting restrictions on exports of diesel fuel via pipelines to seaports for producers that supply at least 50% of diesel fuel produced to the local market

MOSCOW, October 6. /TASS/. The Russian government has approved a number of new systemic measures for maintaining stability in the fuel market, the Cabinet of Ministers press service said in a statement.

In particular, it has been decided to amend the Tax Code and resume, effective October 1, the parameters of the fuel damper mechanism that were adjusted starting from September 1. "Changing the damper coefficient from 0.5 to 1 will allow for increasing the amount of compensation for shortfalls in revenue in sales of motor fuel in the domestic market to refineries. This will allow for ensuring economic incentives for saturation of the domestic market with fuel, and curb the growth of wholesale exchange prices, which is expected to foster support for a stable price situation in the retail market at a level close to inflation," the statement reads.

Moreover, Russia is lifting restrictions on exports of diesel fuel via pipelines to seaports for producers that supply at least 50% of diesel fuel produced to the local market. For suppliers of fuel that purchase it in the market, not produce it themselves, a protective duty on petroleum products in the amount of 50,000 rubles ($500) per ton has been imposed for preventing potential "grey" export schemes.

"Consequently, the government will be thwarting attempts by sub-purchasers to buy fuel beforehand for further export after the existing restrictions are removed. This also prevents them from offering class-specific fuel as other products," the Cabinet noted.

The authorities have also stepped up demands for the sale of Class 5 gasoline and diesel on exchanges by oil producers from 13% to 15% and from 9.5% to 12.5%, respectively, which is expected to raise the guaranteed volume of supply of demanded fuel on exchanges and increase the volume of transactions under competitive terms.

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