AXIS MILES Translational. Region: Russia –
Source: Russia Ministry of Energy
Moscow, June 16. – The dynamics of retail prices for diesel fuel will remain within inflation. The growing demand for diesel fuel in Russia is stably provided by the current production, which is at a level twice as high as consumption. According to operational data, since the beginning of June, daily shipments of diesel fuel to the domestic market are on average 4% higher than in the same period in 2019 – about 108.5 thousand tons per day. For this reason, a shortage of fuel at the filling station is, in principle, excluded. In addition, it should be noted that the main consumer of diesel fuel in the Russian Federation continues to be the commercial sector, not retail. The domestic diesel fuel market is currently in a stable state, but remains subject to such macroeconomic factors as changes in world oil prices and export prices on the markets of Europe and the Asia-Pacific region, as well as the continuing growth of demand on the domestic market against the backdrop of the onset of the holiday period in Russia and the persistence of restrictions on air traffic.In case of high demand on the domestic market for diesel fuel, the Government has mechanisms to redirect export volumes to meet domestic demand. The Ministry of Energy of the Russian Federation monitors the implementation of the refinery repair schedule, and therefore the risks of even a local shortage of fuel are also excluded. At the same time, one of the key mechanisms for influencing the market to prevent changes in the dynamics of the final prices of diesel fuel at filling stations above inflation is the operation of the “damper mechanism”, companies continue to receive payments for supplies to the domestic market. The Russian Ministry of Energy, together with the FAS Russia, continues to monitor the dynamics of commodity supplies and their prices on a daily basis, their growth since the beginning of the year does not exceed the accumulated dynamics of gasoline prices, while the current trend is explained by the catching-up nature of diesel fuel prices in relation to gasoline quotes. To maintain the situation within inflation, the companies participating in exchange trading continue to supply to the exchange in a stable mode: 35.3 thousand tons of diesel fuel pass through it every day, which is 27.9% more than in the same period in 2019. The combination of these factors guarantees the further preservation of the price dynamics at gas stations within the inflation rate.
EDITOR’S NOTE: This article is a translation from Russian Language to English.