1 Jul 2010 19:21

State would get right to regulate oil, product prices under Energy Ministry proposal

MOSCOW. July 1 (Interfax) - The Energy Ministry has proposed setting down in law the right of the state to regulate prices on crude oil and oil products in the event of steep price increases or price manipulation.

The provision is contained in a draft federal law covering production, refining, trunk pipeline transportation of oil and products, a copy of which has been obtained by Interfax.

"In order to prevent abuse of a dominant position in the oil sector in relation to organizations that sell crude oil and product, state price regulation is applied," it says.

Price regulation can be applied in instances when "the pace of price increases on crude oil and/or oil products accelerates relative to indicators established by the Russian government that take into account continuous price monitoring on external crude oil and product markets and the results of exchange trading, among other sources."

Price regulation can also be triggered by "manipulation of prices by organizations occupying a dominant position, with the goal of preventing abuse and price manipulation."