Russia’s Putin orders the government to stabilize retail fuel prices. To further balance the local market by establishing a prohibition on the export of gasoline and diesel, Russian President Vladimir Putin directed his administration on Wednesday to ensure retail fuel prices stabilize.
Putin also advised the cabinet to move quickly and suggested that it consider revisiting the taxes paid by the oil industry.
To stop a rise in local fuel costs, the government announced a temporary ban on exporting gasoline and diesel to any nations outside of a group of four former Soviet states on Thursday.
Although there was a brief easing of the limitations announced over the weekend, prices on the local commodity exchange slowly started to rise again.
“The steps have been made, but the cost is increasing… The customer wants a solution, according to Putin. “I’d like to ask that you respond to events more quickly.” The deputy prime minister, Alexander Novak, informed Putin that the administration has been discussing additional steps.
In addition to raising the fuel export tariff from 20,000 roubles for resellers to 50,000 roubles ($518.24) per ton, he said there are intentions to limit the export of grey fuel.
He said that the government is also taking a second look at a reduction in what are known as damper payments, or subsidies to oil refineries, which started this month.
In recent months, gasoline and diesel have been in low supply in Russia. Retail prices are capped to maintain them in line with the official inflation rate, even though wholesale gasoline costs have increased. In some areas of southern Russia’s breadbasket, where gasoline is essential for harvesting, the squeeze has been particularly excruciating. Given the presidential election in March, a significant crisis might be uncomfortable for the Kremlin.
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