Medvedev says another hike of fuel prices unacceptable

GORKI, Moscow Region, Sep 18 (PRIME) -- The situation with a hike of fuel prices that Russia saw in March–May should not repeat, as the limit of the price increase this year has been depleted, Prime Minister Dmitry Medvedev said at a meeting on Tuesday.

“It is clear that this year the limit of the price increase has already been depleted and such events should not repeat,” he said, adding that it is necessary to tightly control the situation on the fuel market.

“In case the price dynamics become uncontrollable, a threat of galloping growth appears, we will have to increase export duties on oil and oil products. As you know, the legislation envisages such possibility, but I expect the government will not have to use this instrument and I expect that leaders of oil companies have heard what I said,” he said.

Fuel prices grew rapidly in April and May. The government had to cut excise duties on gasoline and diesel fuel, and agreed with the largest oil companies to fix prices at the level as of May 30 while the government works on measures to support the industry.

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