Deputy Prime Minister Alexander Novak, following a meeting on the situation in the Russian oil products market, instructed relevant agencies to prepare a balanced action plan to maintain the stability of the domestic fuel market. This was reported on 22 June by the government press service. Vedomosti has investigated which initiatives may be included in this plan.
According to two sources familiar with the outcome of the meeting, the list of measures may include ensuring the import of motor fuel into Russia. At the same time, the Ministry of Finance must adjust the damping mechanism in the fuel market so that the government is able to make payments under it when importing oil products.
Currently, Russia imports petrol and diesel fuel from Belarus. In October last year, the Council of the Eurasian Economic Commission (EEC) zeroed the import duty on supplies of petrol, diesel, aviation and marine fuel until 30 June 2026; previously the duty rate was 5%. In early June this year, Russia proposed extending the zero import duty until 30 June 2027.
Another initiative that could be included in the government’s plan, according to the Vedomosti sources, is the possibility of producing oil products in Russia with characteristics that deviate somewhat from the current technical regulations. Kommersant wrote in mid-June that the government had allowed certain refineries to produce petrol and diesel fuel with deviations from the technical regulation requirements regarding sulphur content and other quality indicators.
According to one of the Vedomosti sources, implementing these measures may take about a month. The plan will also include traditional measures, such as ensuring that oil companies prioritise fuel supplies to the domestic market and make maximum use of their production capacities.
Another aspect could be a temporary reduction in the mandatory sales volume of petrol on the exchange from 15% to 10% of production, effective from 1 July to 30 September 2026. A corresponding draft joint order by the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been published on the federal portal of regulatory legal acts. Volumes that do not go to the exchange are intended to be directed towards agricultural producers and other socially significant consumers, says one of the Vedomosti sources.
In addition, the government meeting presented the results of monitoring the situation on the domestic fuel market in terms of pricing. The FAS reported on the measures being taken to prevent unjustified price increases for oil products and to curb violations of antimonopoly legislation.
The meeting participants also reviewed the situation with oil product supplies to the regions and assessed the level of accumulated reserves. Representatives of oil companies reported on measures to saturate the domestic fuel market, maintain stable pricing, increase oil product production volumes, and bring new production facilities into operation.
Novak instructed the FAS to continue continuous monitoring of fuel prices and, if necessary, to take prompt action.
The fuel market stabilisation plan should be prepared taking into account already existing regulatory mechanisms, the cabinet’s statement noted.
The payment of the damping mechanism for petrol imports is not about attracting supplies, but about keeping domestic prices in check, since the cost of petrol and diesel on external markets is significantly higher, argues Igor Yushkov, an expert at the Financial University under the Government of the Russian Federation. Otherwise, independent filling stations would have to price petrol tens of roubles higher, agrees Sergei Kaufman, an analyst at Finam Group.
At the same time, subsidising imports through the damping mechanism creates a dangerous precedent of financing foreign suppliers and could negatively affect Russian oil refining, believes Dmitry Prokofiev, Director of External Communications at NEFT Research. Lowering environmental standards for fuel production will have a limited impact, Kaufman believes.
Regulators should consider the possibility of centralised fuel purchases from far abroad using funds from the reserve fund, which are set aside in the federal budget for emergency government purchases, believes Sergei Tereshkin, CEO of Open Oil Market. In his opinion, it is also important to maintain the current standards for petrol supplies to the exchange, as this improves the assessment of the situation by independent filling stations.
All administrative measures that could help have already been introduced, Kaufman argues; the only remaining options are either increasing imports or restoring production by preventing new attacks on refineries.
Vedomosti has sent inquiries to the Ministry of Energy, the Ministry of Finance and the FAS.
Source:
Vedomosti
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