Gasoline price dynamics slightly outpacing inflation, talks with oil companies underway to control prices - Russia's Energy Ministry

MOSCOW. Aug 7 (Interfax) - Russia's petroleum product market is demonstrating steady stability, and the volumes of commercial gasoline and diesel reserves correspond to seasonal norms and are close to record levels, thereby guaranteeing reliable supply of domestic demand, the Energy Ministry told reporters.

"Gasoline price dynamics are slightly ahead of inflation. The diesel market is showing steady dynamics. Federal State Statistics Service (Rosstat) operational data indicate a slight decrease in the average price by 0.02% was recorded in the last reporting period. The Russian Energy Ministry is constantly monitoring the market situation, maintaining constructive talks with oil companies to ensure a balanced market and control over the pricing situation," the ministry said.

The ministry also said that special emphasis is maintained on uninterrupted supplies of diesel to agricultural enterprises in preparation for the harvesting campaign.

"The ministry jointly with the Federal Anti-monopoly Service (FAS) and oil companies are constantly monitoring and controlling price dynamics, which allows maintaining a balance between supply and demand," the Energy Ministry said.

Rosstat data indicate that prices have increased 4.9% since the beginning of the year as on August 4, outpacing the overall inflation rate for the second consecutive week. Prices have dropped to 4.37% since the beginning of the year amid weekly deflation. The average cost of a liter of gasoline domestically as on August 4 was 61.19 rubles versus 61.02 rubles on July 28. The cost for a liter is 57.99 rubles for AI-92 against 57.83 rubles, 63.25 rubles for AI-95 versus 63.06 rubles, and 84.55 rubles for AI-98 against 84.54 rubles.

Diesel has 1.9% since the beginning of the year, with the average price domestically being 71.49 rubles per liter on August 4 versus 71.50 rubles the previous week.

The price for AI-95 on the SPB Exchange is currently at an all-time high. The price for 92-grade gasoline is above the cutoff for the damper. The government at the end of July introduced a ban on gasoline exports for manufacturing companies until August 31 amid rising exchange prices. The ban was previously in effect for non-manufacturers.

The Energy Ministry is constantly emphasizing that the situation on the domestic fuel market remains under control, and price fluctuations are seasonal.

Meantime, the ministry said that gasoline prices are rising at domestic gas stations, though "the rates remain within general inflation, as well as the decisions reached in excise policy."