Vice Prime Minister Alexander Novak, following a meeting on the situation in the Russian fuel market, has tasked relevant authorities with preparing a balanced action plan to maintain the stability of the domestic fuel market. This was reported by the government press service on June 22. "Vedomosti" has investigated which initiatives might be included in this plan.

According to two sources familiar with the meeting's outcomes, the list of measures may include ensuring the import of motor fuel into Russia. The Ministry of Finance is expected to adjust the damping mechanism on the fuel market so that the government can make payments related to imports of petroleum products.

Currently, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission (EEC) council waived the import duty on supplies of gasoline, diesel, aviation, and marine fuel until June 30, 2026, having previously set the duty rate at 5%. In early June, Russia proposed to extend the zero import duty until June 30, 2027.

Another initiative that may be included in the government plan, according to "Vedomosti" sources, is the possibility of producing petroleum products in Russia that deviate slightly from the current technical regulations. "Kommersant" reported in mid-June that the government allowed some refineries to produce gasoline and diesel with deviations from requirements regarding sulfur content and other quality indicators.

One source indicates that around a month may be needed to implement these measures. The plan will also include traditional actions, such as ensuring priority fuel supplies to the domestic market by oil companies and maximizing their production capacities.

Additionally, a temporary decrease in the sales norm for gasoline on the exchange from 15% to 10% of production volume may be established from July 1 to September 30, 2026. The corresponding draft joint order from the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been published on the federal portal of regulatory legal acts. It is expected that volumes not supplied to the exchange will be directed towards agricultural producers and other socially significant consumers, according to one "Vedomosti" source.

Furthermore, the meeting discussed the results of monitoring the price formation situation in the domestic fuel market. FAS reported on measures being taken to prevent unjustified price increases in petroleum products and to suppress violations of antitrust legislation.

The meeting participants also reviewed the situation regarding petroleum product supplies to the regions and assessed the levels of accumulated reserves. Representatives from oil companies reported on their measures to saturate the domestic fuel market, maintain a stable price situation, increase production volumes of petroleum products, and bring new production capacities online.

Novak instructed the FAS to continue ongoing monitoring of fuel prices and to take necessary measures swiftly when required.

The stabilization plan for the fuel market must take into account the existing regulatory mechanisms, the government announcement noted.

Payments under the damping system related to gasoline imports are not focused on attracting supplies but rather on keeping prices stable in the domestic market since gasoline and diesel costs significantly more in international markets, argues Igor Yushkov, an expert at the Financial University under the government. Otherwise, gasoline at independent gas stations will cost significantly more, agrees Sergey Kaufman, an analyst at FG "Finam".

However, subsidizing imports through the damping mechanism creates a dangerous precedent by funding foreign suppliers and could negatively affect Russian oil refining, believes Dmitry Prokofyev, the director of external communications at NEFT Research. Diminished environmental standards in fuel production will have limited impact, asserts Kaufman.

Regulators should consider the option of centralized fuel purchases from abroad using funds from the reserve fund designated in the federal budget for emergency government purchases, says Sergey Tereshkin, CEO of Open Oil Market. He also believes it is crucial to maintain the current norms for gasoline supplies to the exchange as this will enhance the independent gas stations' assessment of the situation.

All administrative measures that could help have already been implemented, states Kaufman. The options remaining are either an increase in imports or a restoration of production by preventing new attacks on refineries.

"Vedomosti" sent inquiries to the Ministry of Energy, the Ministry of Finance, and the FAS.

Source: Vedomosti