Putin: Government, antitrust to stabilize gasoline prices by Sep

MOSCOW, Jun 7 (PRIME) -- The Russian government and the Federal Antimonopoly Service will track fuel prices closely and stabilize them by September, President Vladimir Putin said on Thursday during a Direct Line Q&A conference.

Russia’s gasoline prices jumped 13% on the month in April and 5.6% in May. In order to curb the growth, the government cut excises on gasoline and diesel fuel from June 1 and will abstain from raising them from July 1. It also agreed with the largest Russian oil producers to fix retail prices for fuel at the level of May 30.

“We are to take additional measures until the autumn this year to stabilize the situation at the market…I assume that the government will keep a close eye on the situation, and the Federal Antimonopoly Service will make corresponding decisions instead of turning a blind eye on what is happening,” Putin said.

The prices grew because of poor regulation, which is unacceptable, he said.

Putin even called Energy Minister Alexander Novak asking him to explain the situation. Novak said that fiscal measures of the government stopped the fuel price growth. There is no fuel deficit in Russia at the moment, he said.

The government also worked out additional measures to stabilize the prices. “The issue here is about introduction of an export duty by the government of Russia, for which we’ve prepared a corresponding bill that we are to submit to the State Duma very soon. We are asking for your support. This would become an additional incentive for prices not to grow at the internal market,” he said.

Putin promised support in increasing export duties on oil products. “We’ve always had constructive dialogue with oil and gas companies. It is good that they understand that we have to solve the problem and not to corner it…You should prepare that bill, I will support it,” he said.

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