Russia's Finance Ministry defends damper: without it and reverse excise tax, prices on domestic market would be 20 rubles higher

MOSCOW. June 19 (Interfax) - The fuel damper continues to play a positive role for the domestic market of petroleum products, Russia's Finance Ministry said.

As the head of the department Anton Siluanov said, answering questions from State Duma deputies, gasoline prices on the domestic market would be 20 rubles per liter higher in the current conditions without the damper and reverse excise tax.

"As for the high-value financial transfers to oil refining companies, this is a necessary condition for the prices for petroleum products on the domestic market to be independent of global market conditions, to be stable and to grow on average, at approximately the rate of inflation. Therefore, whether it is a reverse excise tax or damper payments that we transfer to our oil refining companies, these ensure the stability of prices for petroleum products, regardless of external conditions," he said, noting that if these payments did not exist, prices on the domestic market would rise along with world prices.

"If today the average price for gasoline is about 60 rubles, then if we cancel all our damper payments and reverse excise taxes, the price could increase 20 rubles to 80 rubles. I think no one needs this and it would be unfair to our citizens," the minister said.