PRESS: Russia’s Rosneft can become sole fuel supplier to police

MOSCOW, Mar 29 (PRIME) -- The Russian government is considering appointing oil major Rosneft as the sole fuel supplier to the Interior Ministry, business daily Kommersant reported on Tuesday, citing a letter of the Product Market Council, which comprises independent fuel makers, to Prime Minister Dmitry Medvedev.

The participants of the council think that Rosneft’s appointment can “have negative consequences” and “undermine the interests of oil product makers and independent market participants.” Rosneft is unable to satisfy the demand of police bureaus and will have to purchase fuel on the market, which will boost the end price, according to the letter.

Rosneft received an Emergency Ministry sole supplier status in 2014 and an Investigative Committee one in 2015. According to data in the letter, Rosneft’s prices for these authorities are by 10 rubles per liter higher than market ones.

Representatives of the Federal Antimonopoly Service said that they will find out whether the information of the Product Market Council is true, the watchdog opposes granting Rosneft the sole supplier status, a source in the industry told Kommersant.

(67.7807 rubles – U.S. $1)

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