21 Jun 2018 14:39

Rosneft not allowing sharp price growth at own filling stations, to deliver on commitments - Sechin

KRASNOYARSK. June 21 (Interfax) - Rosneft is not allowing prices at its own filling stations to rise sharply and intends to honor commitments that it has undertaken, the oil company's chief, Igor Sechin, said at the annual shareholders meeting.

"Measures are being taken by the Russian government and president. At yesterday's meeting, Russian President Vladimir Putin spoke of a possible mechanism to ensure the domestic market is fully supplied - the introduction of quotas for all oil companies and supplies to the domestic market. If I remember rightly, this is 17.5% of all oil output. If Russia consumes around 90 million tonnes of petroleum products a year, that 17.5% will in that case ensure the necessary level of consumption," Sechin said, adding that the measure could stabilize and even lower petroleum product prices.

Sechin said the "ruble factor" and the national currency's devaluation had affected fuel prices. The second factor was higher oil prices. "The cost of refinery feedstock has gone up 25%. Add to that higher transport and energy costs and you will see that refining costs have gone up significantly. But the anti-monopoly agencies are taking action to curb higher costs in the retail sector. Thus, refining is becoming unappealing, and we have to take that burden on ourselves," Sechin said.

He also said fuel prices at Rosneft filling stations were lower than those of rival companies.