UPDATE: Medvedev orders extra measures to stabilize gasoline prices

(Adds comments in paragraphs 7–10)

GORKI, Moscow Region, Jun 4 (PRIME) -- The Russian government should be ready to take additional measures to stabilize gasoline prices, while in certain cases prices should be reduced, Prime Minister Dmitry Medvedev said Monday at a meeting with his deputies.

“I would ask not only to monitor the development of the situation, but to ensure that these agreements are fully complied with. In case of necessity to prepare other urgent measures aimed at ensuring that the reached agreements are complied with, the prices are stable, and in certain cases reduced,” he said.

“We should not ease control over what’s happening, because in such situation none of the companies, none of industrial groups, vertically integrated companies should show selfishness,” he added.

Medvedev ordered Deputy Prime Minister Dmitry Kozak to hold one more meeting with oil companies.

Kozak said it is necessary to keep balance between profitability of oil products production and interests of other industries.

“We should understand that (it is necessary) to balance the interests: on the one hand, we should not allow a situation when production of oil products loses business sense inside the country, on the other hand – to ensure interests of other economic sectors,” he said.

Enterprises of various economic sectors could have spent additional more than 220 billion rubles for the year if the trend on rising gasoline and diesel fuel prices had maintained, Kozak also said.

“An additional increase in gasoline prices is an additional financial burden on other economic sectors. I will remind (you) that in the production sector, agriculture, construction, and transport, if this trend on growing prices for motor fuel persisted, these are additional expenditures of more than 220 billion rubles in annual terms for these sectors,” he said.

Kozak held a meeting with Russia’s largest oil companies on May 30, and they agreed to keep prices for gasoline and diesel fuel unchanged.

“Oil companies understood this proposal, this agreement, it is currently on the whole complied with,” said.

The government has on the whole agreed on the main parameters of the tax maneuver for the oil industry and plans to discuss it with oil companies within a week, Kozak also said.

(62.2056 rubles – U.S. $1)

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