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Putin orders govt to stabilize retail fuel prices amid export ban

  • By Al Mayadeen English
  • Source: Agencies
  • 27 Sep 2023 19:35
  • 1 Shares
2 Min Read

The Russian President asks the government to seek additional measures to balance the domestic market.

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  • Russian President Vladimir Putin in Moscow, Russia, Friday, Aug. 18, 2023 (AP)
    Russian President Vladimir Putin in Moscow, Russia, Friday, August 18, 2023 (AP)

In an effort to ensure the stability of retail fuel prices, Russian President Vladimir Putin ordered the government on Wednesday to follow through and seek additional measures to balance the domestic market following the ban on gas and diesel exports.

Putin also urged the competent authorities to act fast, giving them the option to review oil industry taxes.

On Thursday, the government introduced a temporary ban on gasoline and diesel exports to all countries outside a circle of four ex-Soviet states to stop an increase in domestic fuel prices.

"The measures have been taken, but the prices are rising... The consumer needs a result," Putin said, adding, "I'd ask you to react to events more promptly."

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Deputy Prime Minister Alexander Novak informed Putin that the government is already considering additional measures, with suggestions to restrict grey fuel exports and increase fuel export duty to 50,000 roubles ($518.24) per ton from 20,000 roubles for resellers.

Novak also noted that a cut to so-called damper payments, or subsidies to oil refineries, is being considered by the government.

The country has endured shortages of gasoline and diesel in recent months, witnessing a hike in fuel prices even though retail prices are capped to keep them in line with the official rate of inflation.

Despite G7 countries imposing anti-Russia sanctions over the Ukraine war, Russian crude oil supplies saw a 50% increase this spring, according to the Financial Times this month, citing data from analytics company Kpler.

Russia has adjusted its seaborne diesel and gasoil exports, and a recent temporary ban on gasoline and diesel exports to most nations is likely to tighten supplies further.

  • Where did Russian fossil fuel go since the beginning of the war?
    Where did Russian fossil fuel go since the beginning of the war?
  • Diesel fuel
  • Fuel
  • Russia
  • Ukraine
  • Alexander Novak
  • Vladimir Putin

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