Gasoline export ban for producers in Sept aimed at balancing market, additional supply forming - ministry

MOSCOW. Aug 21 (Interfax) - Commodity exchange prices for fuel are set on market principles, so there are subject to short-term volatility, but systematic work is now being done to stabilize the price situation, including by creating additional supply on Russia's domestic market, the Energy Ministry said.

"For example, in exchange trading on certain days, we have seen wholesale prices for all types of automobile gasoline fall in the range of 0.4% to 2.9% by almost all price indicators. As production increases in coming days, volatility is expected to decrease further," the ministry said.

Despite the period of high seasonal demand due to crop harvesting, the market is fully covered with supply of all types and brands of fuel, the ministry said. Production and shipments of gasoline to the domestic market since the start of the year have steadily exceeded the figures for the same period of last year. The necessary level of reserves has been formed and they are used for prompt response when necessary, the ministry said.

Fuel shipments by all types of transport are being made on a priority basis and there have not been any reports of problems with logistics and delivery, the ministry said.

"Amid the temporary ban on automobile gasoline exports, all additional amounts of fuel are being shipped to the domestic market, including exchange sales and small-scale wholesalers. This measure, imposed as for September 1 for producers and for October for non-producers, is intended to quickly balance the market," the ministry said.

Following a meeting about the situation on the fuel market in mid-August, the Russian government issued a statement saying that Deputy Prime Minister Alexander Novak supported the Energy Ministry's proposal to extend the ban on gasoline exports for all, including producers, to September, and for non-producers to October. An official resolution has not been published yet. The ban currently expires on August 31.

The ministry said it is also working daily with regions where there could potentially be deviations in prices, and is taking all necessary measures to maintain a stable and continuous supply of fuel to the country's economy and households.