Official: Russian govt has instruments to prevent fuel price growth

MOSCOW, Jun 13 (PRIME) -- The Russian government has all the instruments to prevent fuel price growth meaning that a scenario where the price skyrockets to 100 rubles per liter of gasoline is impossible, Deputy Prime Minister Dmitry Kozak said on Wednesday at a government meeting on fuel prices.

Fuel prices grew rapidly in April and May. The government had to cut excises 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.

But Pavel Bazhenov, president of the Independent Fuel Union, a group representing more than 700 independent Russian fuel filling stations, said on June 10 that the government measures threaten the very existence of independent fuel filling stations, without which it would be impossible to provide fuel to consumers and gasoline prices may skyrocket to 100 rubles per liter.

“Today the media and some experts, and representatives of companies make apocalypse-scale forecasts of prices at 100 rubles at the end of the year. This is impossible. This is out of the question, as the government has enough instruments to regulate the situation and to prevent rapid growth of prices for motor fuel,” Kozak said.

Energy Minister Alexander Novak said that the fuel prices, including prices at filling stations, have been stabilizing since May 30. He also said that if oil prices at the external markets fall to U.S. $70 per barrel from above $75 per barrel, the situation at the Russian domestic fuel market may stabilize completely.

Alexei Sazanov, director of the Finance Ministry’s tax and customs policy department, said that the ministry planned to submit a bill on temporary reduction of fuel excises and an increase of the export duty for oil products to the parliament’s lower house State Duma on Friday.

(62.3431 rubles – U.S. $1)

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