Pres spox says govt takes measures to curb fuel price growth

MOSCOW, Oct 30 (PRIME) -- The Kremlin is aware of the situation on the gasoline market, and this issue is actively being solved in the government, the president’s spokesman Dmitry Peskov told reporters on Tuesday.

“This issue should be certainly addressed to the government. Of course, the Kremlin is aware of it, this is the issue that is being thoroughly monitored, but in this case this is the government that deals with it. You see that… very active, energetic measures are being taken, and the work is being held. But this is the government,” Peskov said.

Fuel prices grew rapidly in Russia in April and May. The government had to cut the excise duties on gasoline and diesel fuel, and agreed with the largest oil companies to fix prices at the level of May 30. The government plans to raise the excise duties for gasoline from January 1, 2019.

According to the Federal State Statistics Service, gasoline prices in Russia grew 10% on the month in September.

Oil major Rosneft’s press secretary Mikhail Leontyev told PRIME that the government itself provided for growth of gasoline and diesel fuel prices by making a decision to raise excise duties from January 1, 2019.

“There are two problems, different problems. There is a problem connected with consequences of the tax maneuver, need of the corresponding regulation, balance of oil and oil products, between their exports and domestic consumption. And there is another problem – the increase of excise duties. The increase of excise duties is a decision of the government’s financial block on an increase of fuel prices, because excise duties are being levied on customers,” Leontyev said.

“It would be quite strange to observe how the government, which made a decision on an increase of prices, is fighting the government’s decision on an increase of prices.”

Prime Minister Dmitry Medvedev said Monday the government could introduce prohibitive duties on oil and oil products to settle the situation with fuel prices.

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