Novak recommends Russian oil companies increase supply of winter diesel fuel on exchange and agree on production schedule for it by end of March
MOSCOW. Dec 12 (Interfax) - Oil companies were recommended they increase supplies of winter diesel fuel available for exchange trading, while the Energy Ministry has been instructed to agree with producers on a schedule for its release by the end of March which will cover the entire period of demand, the Russian government said in a statement following a meeting with Russian Deputy Prime Minister Alexander Novak on the domestic market situation for petroleum products.
The meeting was attended by the heads of oil companies, representatives from the Energy Ministry, the Finance Ministry, the Federal Antimonopoly Service, the Agriculture Ministry and the St. Petersburg International Commodity and Raw Materials Exchange (SPIMEX).
"The Deputy Prime Minister gave instructions to monitor fuel pricing at gas stations in problem regions. The Energy Ministry and oil companies need to agree on the balance of production of winter diesel fuel in the country needed for the entire demand season (through the end of March). It is recommended that oil companies increase supplies of winter diesel available for exchange trading," the statement says.
The production rate for winter diesel fuel at the end of November was higher than in the same month last year, it was noted. Gasoline and diesel fuel reserves remain high.
The meeting participants noted the stabilization of fuel prices in the country and the absence of shortages. In most regions, the planned reduction in the cost of gasoline and diesel fuel in the small wholesale segment continues in accordance with exchange dynamics. "Fuel prices do not exceed the forecast inflation for the year," the statement said.
As reported, during the high demand season in the summer of 2023, a pricing crisis emerged on the Russian fuel market due to a number of reasons. The situation worsened towards the end of summer, when, at the height of the harvesting campaign, farmers began to complain about high prices for petroleum products, as well as fuel shortages that were occurring in some places.
For a long time, neither the government nor the oil companies could resolve the situation; as a result, the government took tough measures, banning the export of fuel from the country as of September 21. The export duty on petroleum products for non-producers was also increased. Prohibitive measures were lifted gradually. On November 17, the ban on the export of gasoline was lifted, and on November 22, on the export of summer diesel fuel as well. The embargo on the export of winter diesel fuel from Russia continues to be in effect.
While the pricing crisis continued, Novak held meetings on the fuel market's problems, demanding an increase in the exchange sales of petroleum products and a reduction in prices at the pump. Gradually, the price situation returned to normal; currently, exchange prices for gasoline are decreasing and have already reached the level of February 2023.
Rosstat data show that retail gasoline prices in October 2023 decreased for the first time since February of this year, falling 1.57% from the previous month following a 2.11% increase in September, a 2.5% increase in August, and a 2.2% increase in July. In November, the decline in gasoline prices slowed to 0.71%. Over the 11 months of 2023, gasoline prices increased 7.2% (with overall inflation at 6.64%).
Retail prices for diesel fuel in November increased 0.3% month-on-month after falling 1.5% in October, jumping 6.2% in September, rising 4.1% in August, and growing 0.8% in July.