MIL OSI Translation. Region: Russian Federation –
The meeting participants discussed the adjustment of the damper mechanism, as well as the implementation of the Deputy Prime Minister’s instructions following the January meeting on the fuel market.
Deputy Prime Minister Alexander Novak held a meeting with specialized federal executive authorities with the participation of representatives of oil and gas companies on the situation in the domestic market of oil products, as well as the operation of the damper mechanism in the domestic fuel market.
The progress in the execution of the Deputy Prime Minister’s instructions given following the meeting on January 28, 2021 on the situation in the fuel market was reviewed. In addition, the meeting participants discussed the current situation on the domestic market of basic petroleum products in terms of uniformity and sufficiency of supplies. Separately, the previously planned adjustments to the damping mechanism of the domestic market for petroleum products, which ensure the growth of prices in the retail market of petroleum products at a level not higher than inflation, were considered separately.
As Alexander Novak noted, fuel companies are conscientiously fulfilling their instructions to fill and supply the domestic market with petroleum products in accordance with the growing demand, while gradually increasing the refinery load and fuel reserves by the spring-summer period.
“The decisions made have helped to significantly ease the pressure on the wholesale market of oil products and will contribute to the further accumulation of reserves before the summer period. Fuel reserves have already increased by more than 35% compared to the beginning of February, ”the Deputy Prime Minister noted.
Speaking about adjusting the damper, Alexander Novak emphasized the importance of the mechanism for the market in terms of maintaining sufficient profitability in the retail segment and keeping the growth of final prices within inflation.
“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 Russian Ministry of Finance is preparing a corresponding draft law. It is planned that this mechanism will start working on May 1, 2021 in order to maintain marginality in retail and price stability at gas stations, ”stressed Alexander Novak.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.