14 Jul 2023 12:36

Thresholds for gasoline, diesel sales on exchange could rise1 pp on Sept 1 - Russian Energy Ministry

MOSCOW. July 14 (Interfax) - The Russian Federal Anti-monopoly Service and Energy Ministry have drafted regulatory acts on a planned increase in sales of gasoline and diesel fuel on the mercantile exchange by 1 percentage point from September 1, 2023, the ministry told reporters.

"This measure is intended to increase domestic market supply and stabilize prices," it said.

"There is no shortage in the gasoline market, fuel production is increasing gradually after the end of the first wave of scheduled repairs at refineries," it said.

"The Russian fuel market situation is under control, domestic market demand is being met in its entirety. The Energy Ministry, together with the Federal Antimonopoly Service, monitors the situation regularly and holds meetings with market participants," the ministry said, adding that a document to raise the lower thresholds for fuel sales on the exchange had been drafted with this in mind.

Sources who have seen minutes from a meeting on the fuel market that Deputy Prime Minister Alexander Novak chaired on June 30 have told Interfax that the Energy Ministry and FAS were asked to adopt a joint order to raise the lower thresholds for selling gasoline and diesel on the exchange by 1 pp and to submit proposals to raise the gasoline threshold further to 15%. They have until July 25 to report to the government.

The government's press office has said "the deputy prime minister supported the FAS proposal to increase the minimum volume of gasoline sales on the St. Petersburg International Mercantile Exchange to 13% of production volume, and also instructed that the possibility of further increasing the standards should the market situation deteriorate. "

The lower thresholds for sales are currently 8.5% for diesel and 12% for gasoline.

The regulators also have until August 3 to elaborate plans for quotas on petroleum product exports and further measures to prevent a gray market for these exports, and to draft a government resolution on the matter if necessary.

The relevant agencies and ministries have until that date to agree on a regular schedule for refinery repairs and maintenance to ensure stable petroleum product supplies to the domestic market during the repair period.

The relevant parties had until June 14 to identify top-priority and critical social and economic factors on the market and draft proposals for consideration at a cabinet meeting.