MOSCOW, 15 March – RIA Novosti. The authorities will adjust the mechanism for setting prices for gasoline and diesel fuel, Deputy Prime Minister Alexander Novak said following a meeting with representatives of federal departments and oil companies.
In Russia, there is a so-called damper, which is designed to restrain fluctuations in the cost of fuel in the domestic market. In general terms, if the export price of gasoline and diesel fuel is higher than domestically, the state will partially compensate the oilmen for this difference so that they do not raise prices. When Russian prices exceed export prices, fuel producers give the budget part of their excess profits.
“We see that the mechanism in the current macroeconomic conditions at the current exchange rate and with an increase in oil prices on world markets partially required an adjustment. The government has worked out this issue. Currently, the Ministry of Finance is preparing a corresponding draft law. May 2021 in order to maintain marginality in retail and price stability at gas stations, “Novak was quoted as saying in the government's press service.
Now the conditional prices in the damper are indexed at five percent annually. However, oil companies say that the mechanism often does not take into account real market conditions, and such indexation is ahead of inflation.
The decision to adjust the price of the domestic market in the formula to the level of actual growth rates in retail was made on March 10 at a meeting with Deputy Prime Ministers Alexander Novak and Dmitry Grigorenko.