Medvedev may introduce protective duties on oil to the end of the week

© RIA Novosti / Alexander Activesprite in fotoreceptor of the government of the Russian Federation Dmitry Medvedev holds a government meeting. 31 October 2018Medvedev may introduce protective duties on oil to the end of the week© RIA Novosti / Alexander Activesprite the image Bank

If the government and oil companies fail to reach agreement on the stabilization of fuel prices, until the end of the week will adopt a document on the introduction of protective duties for oil and petroleum products, Prime Minister Dmitry Medvedev.

So he responded to the words of Deputy Prime Minister Dmitry Kozak about what the evening will hold talks with oil companies.

According to him, if the agreement will sign it, then enforce it will be the government and the Ministry of energy, in particular.

Possible price increase

On the eve of the RBC with reference to the participants of the meeting Kozak with the representatives of oil companies said that they offered early next year to raise fuel prices four to five cents per liter.

However, other participants expressed the view that the oil companies «just complained to the government for their problems and four to five roubles has estimated the losses in the sale of a liter of fuel», says RBC.

«But to raise prices on a «me bad, so do not care at all» still is not» — said the source publication.

The meeting was held on October 24.

…And its mitigation

Two days before that, the head of the accounts chamber Alexey Kudrin has expressed confidence that the government will do everything possible to mitigate the rise in gasoline prices in early 2019 due to the indexation of excise taxes.
«We really believe that the increase in excise duties can raise prices, but as I understand it, the government is now considering how to mitigate this growth.

The government decided from 1 January 2019 to raise the fuel excise. According to audit chamber, the planned increase in the excise tax on gasoline by 1.5 times may lead to a sharp rise in fuel prices and demand additional compensatory and deterrent measures, other than those provided for within the framework of the tax maneuver in the oil industry.

The first Vice Prime Minister, Minister of Finance Anton Siluanov and the Minister of energy Alexander Novak has said that the rise in gasoline prices in 2019 will be within inflation. To keep increasing prices above inflation, in their opinion, will help provided in the tax maneuver dampening component opposite of the excise tax on oil sent for processing.Medvedev may introduce protective duties on oil to the end of the week© RIA Novosti, Infografiken European countries on gasoline prices – 2018