27 Sep 2023 16:19

Putin: Could utilize same mechanism on fuel market as with fertilizers; can export once domestic market provided for

MOSCOW. Sept 27 (Interfax) - Mechanisms similar to those already utilized to regulate fertilizer exports could be applied to stabilize the situation on the domestic market for petroleum products, Russian President Vladimir Putin said during a meeting with government members.

"We do have experience in other industries, for example, with fertilizers. Having indeed supplied the required volume to the domestic market, and then earn on the external market. Well, it works. It is clear that there are specifics here to the oil industry; nevertheless, there is no big difference, one just needs to take the decisions in a timely manner, that is all," Putin said.

Even after the ban on the export of gasoline and diesel on September 21, and despite the decline in prices on the stock exchange, the retail price of AI-92 continued to increase from 49.7 rubles per liter (as of September 21) to 51.5 rubles per liter (as of September 26), he said. "Measures have been taken, but prices are rising. What happens there in these other links is of little interest to the consumer. The consumer needs the end result. The same applies to agricultural producers," Putin said.

The president suggested that Deputy Prime Minister Alexander Novak work more closely with companies so that they understand their responsibility.

"Prices are rising, companies want to make the maximum profit by exporting; this is understandable. They do their job, and we do ours. [...] We will count on the fact that the proposed measures will work. We need to work more closely with the companies, and we have already spoken with you - so that they also understand their responsibility. It is clear that the economics of these companies is important for us too. It is the goose that brings our golden eggs, so this is understandable, and we must treat them with care. But, nevertheless, I would ask you to respond to current events more quickly," Putin said.

"There are other options as well. Timely decision-making on the damper and so on," the president added.

"But there are also taxation-related issues: they [companies] began earning money at the high price, and the budget also earns from it. Here, too, you can think about some clarifications. The budget earns, and they say, give us back that money that the budget earned. Think. We saw what was happening. And we can propose these solutions in advance, and in a timely, automatic manner we will then react to the events that take place when prices rise and fall," the president said.