Oil forced “to pour” Russian gasoline

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www.vsyako.netPhoto: Elena Afonina / TASS

The government continues to require vertically integrated oil companies (VIOCs) to increase the supply of gasoline to the domestic market to avoid shortages and another increase in prices, writes “Kommersant”.

According to the newspaper, another meeting, this time in the Ministry of energy, took place on 24 may. It is the oil companies promised to increase the supply of gasoline to the domestic market (how many exactly is not specified).

Some companies after the meeting, decided to cancel the export of gasoline and send it to the domestic market via the St. Petersburg international commodity exchange, others will not be able to do, because temporarily producing less gasoline because of the repair of their subsidiary refineries.

The government is ready to help the oil companies, the newspaper said. In particular, we consider a variant with increased damping allowances to reverse excise on petroleum products (serves as a subsidy to oil refineries and stimulates them to abandon exports to avoid domestic price growth).

This has long been requested by market participants. Currently, the allowance is 60 percent of the difference in prices on world and domestic markets. However, under certain conditions it can be negative, and then reverse the excise duty is reduced, which gives cause companies to raise prices. From July 1 it will rise to 70 percent diesel and 75 percent for motor gasoline, while resources to pay the authorities are going to look for by raising other taxes — mineral extraction.

The meeting in the Ministry of energy took place after the Federal Antimonopoly service (FAS) has published data on the implementation of the oil agreements with the government: they were achieved last year and in April extended to mid-summer. According to them, oil companies pledge not to raise gasoline prices above the inflation rate, and also put on the Saint Petersburg exchange certain amounts of fuel. According to the FAS, some companies do not fulfill the agreement.

Video, photo All from Russia.



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