Expanding thresholds for indicator deviations in fuel damper not on the table, market is stable - Russia's FAS head

SOCHI. March 20 (Interfax) - An expansion of the thresholds for deviations from the indicator in Russia's fuel damper subsidy mechanism, beyond which damper payments drop to zero, is not appropriate at this time and is not being considered, the head of the Federal Antimonopoly Service (FAS), Maxim Shaskolsky said.

"This measure was one of the measures that were proposed at the time when it was necessary to adopt measures to curb the rate of [price] growth. And then more effective, stricter measures were adopted, such as the export restriction for non-producers [of fuel]. Now everything is fairly stable and such a measure is not relevant, not being considered now," Shaskolsky told Interfax.

Last year, in the course of discussions about changes to the Tax Code, the deputy chairman of the State Duma Energy Committee, Yury Stankevich proposed revising the fuel damper by expand the thresholds for deviation from price indicators to 15% from 10% for gasoline and to 25% from 20% for diesel fuel. If the exchange price of the respective fuel exceeds this amount, damper payments to oil companies drop to zero. Stankevich said expanding the thresholds would eliminate potential risks of a drop in fuel production or increase in fuel exports.

Deputy Finance Minister Alexei Sazanov said later that his ministry was prepared to discuss expanding the threshold for deviations from damper indicator with the oil industry. He said the issue was being discussed with the Energy Ministry, which in turn feared such an expansion of the deviation boundaries would increase the volatility of prices for oil products on the domestic market.