29 Sep 2023 11:00

Novak warns oil cos of measures like those against fertilizer producers if fuel prices keep rising

MOSCOW. Sept 29 (Interfax) - Deputy Prime Minister Alexander Novak has held an emergency meeting with oil company executives and representatives of government agencies regarding the situation on the domestic oil products market, the government press service reported.

"As a result of the ban on exports of gasoline and diesel fuel we saw a decrease in prices on the exchange. We expect the transmission of this price decrease to the small-scale wholesale and retail segments, as well as for agricultural producers. The growth of prices is unacceptable. If the situation does not change, tough regulatory measures will be taken, comparable to those in place on the fertilizer market," Novak said at the beginning of the meeting.

He ordered urgent measures to be taken to reduce fuel prices at oil companies' and independent filling stations and to bring prices in the small-scale wholesale segment down to the level of large-scale wholesale prices plus transport costs.

"The reduction of retail prices must happen soon. The amount of fuel sales on the exchange must not decrease until a balance between supply and demand on the domestic market is achieved," the statement said.

"The federal customs and tax services have been instructed to enforce compliance with the ban on exports of gasoline and diesel fuel, port border bases will be closed for its export, fuel stored in tanks has been shipped to the domestic market," the government said.

"Measures of an administrative and economic nature will be introduced to combat grey exports. The deputy prime minister instructed that a balance between demand and supply be ensured in southern regions of the country. Meetings will be held at least twice a week until the situation on the domestic fuel market stabilizes and prices decrease," the statement said.