Kozak said about the freezing of the wholesale fuel price to the end of the year

© RIA Novosti / Evgeny to Odinakovymi in fotoreceptori at a gas station. Archival photoKozak said about the freezing of the wholesale fuel price to the end of the year© RIA Novosti / Evgeny to Odinakovymi the image Bank

The government agreed with oil companies about keeping fuel prices at the level of may until the end of 2018. This was announced by the Deputy Prime Minister of Russia Dmitry Kozak.

Representatives of the Ministry of energy, FAS, oil companies and independent refineries at a meeting on Wednesday agreed on the level of large — and small-scale wholesale supplies of oil products at fixed volumes and prices.

In addition, monthly production and sales of these products will increase by three percent in comparison with the same period of 2017.

However, the requirements on the growth of production of petroleum products and supply on the domestic market will not touch the Far East.

According to Kozak, the oil companies pledged to immediately begin compliance with the agreements reached, and for legal registration remains day to conduct appropriate corporate procedures.

Installed the agreement will be valid until the end of March next year.

«Artificially undermined»

Deputy Prime Minister Kozak expressed confidence that the situation on the fuel market artificially shattered because independent gas station wanted to reduce wholesale prices, which according to him may not always be justified.

The Deputy Prime Minister added that the Cabinet should respond to such requests. He also noted that the situation on the wholesale and retail segments of the market is likely to stabilise in the near future.

Kozak explained that the estimated level of margins the retail network will amount to 2.7 thousand roubles per tonne for gasoline and diesel fuel, which significantly prevyshaet the current margin.

The threat of duties

Prime Minister Dmitry Medvedev on Monday pointed to the cases of rising prices for gasoline and mandated the Ministry of energy and Kozak to organize in the coming days consultation with oil companies.

The head of government stressed that oil and petroleum products will be introduced prohibitive export duties, if the consultations fail to agree on freezing domestic fuel prices.
Kozak at the meeting of the government said that the package of agreements with oil companies to stabilize prices for fuel are already made. According to project documents, the company will assume the obligations for sales to the domestic fuel market and also on price parameters, to provide the necessary minimum profitability for the independent suppliers of petroleum products.

To this Medvedev replied that the agreement at the meeting with oil companies the government will introduce protective duties on oil and oil products.

Kozak said about the freezing of the wholesale fuel price to the end of the year© RIA Novosti, Infografiken European countries on gasoline prices – 2018