During a meeting regarding the situation in the Russian fuel market, Deputy Prime Minister Alexander Novak instructed relevant agencies to prepare a balanced action plan to maintain the stability of the domestic fuel market. This was announced by the government's press service on June 22. "Vedomosti" has investigated potential initiatives that may be included in this plan.
According to two sources from "Vedomosti" familiar with the outcomes of the meeting, the action plan may include ensuring the import of motor fuels into Russia. Furthermore, the Ministry of Finance is expected to adjust the damping mechanism in the fuel market, allowing the government to make payments when importing petroleum products.
Currently, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission (EEC) council abolished the import duty on gasoline, diesel, aviation, and marine fuel deliveries until June 30, 2026; previously, the duty rate had been set at 5%. In early June this year, Russia proposed extending the zero import tariff until June 30, 2027.
Another initiative that may be incorporated into the government’s plan, according to sources from "Vedomosti," is the possibility of producing petroleum products in Russia with characteristics that deviate slightly from the current technical regulations. "Kommersant" reported in mid-June that the government allowed certain refineries to produce gasoline and diesel fuel with deviations from the technical regulation requirements regarding sulphur content and other quality indicators.
One source from "Vedomosti" stated that implementing these measures may take approximately one month. The plan will also include traditional initiatives, such as ensuring that oil companies prioritise fuel supplies to the domestic market and maximising their production capacities.
Another aspect may involve a temporary reduction of the sales norm for gasoline on the exchange from 15% to 10% of production volumes, effective from July 1 to September 30, 2026. A draft joint order from the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been posted on the federal portal of legal regulations. The volumes not supplied to the exchange are intended to be redirected to support agricultural producers and other socially significant consumers, according to one source from "Vedomosti."
Additionally, the meeting reviewed the findings of a monitoring assessment of the domestic fuel market concerning pricing. The FAS reported on measures being taken to prevent unjustified price hikes for petroleum products and to curb violations of antimonopoly legislation.
Participants also examined the situation regarding the supply of petroleum products to regions and assessed the levels of accumulated reserves. Representatives from oil companies reported on efforts to saturate the domestic fuel market, maintain pricing stability, boost petroleum product production, and bring new production capacities online.
Novak instructed the FAS to continue continuous monitoring of fuel prices and to take prompt necessary measures when required.
The plan for stabilising the fuel market should be prepared considering existing regulatory mechanisms, as noted in the government report.
The damping payments on imported gasoline concern not just attracting supplies but rather maintaining prices in the domestic market since the cost of gasoline and diesel on foreign markets is significantly higher, argues Igor Yushkov, an expert at the Financial University under the Government. Otherwise, independent petrol stations will charge several roubles more, agrees analyst Sergey Kaufman from FG "Finam."
However, subsidising imports through the damping mechanism creates a dangerous precedent of financing foreign suppliers and could negatively impact Russian oil refining, believes Dmitry Prokofiev, Director of External Communications at NEFT Research. The lowering of environmental standards during fuel production will have limited impact, Kaufman argues.
Regulators should consider the possibility of centralised purchases of fuel from distant foreign countries using funds from the reserve fund set aside in the federal budget for emergency government purchases, suggests Sergey Tereshkin, General Director of Open Oil Market. He also believes it is essential to maintain the current exchange supply regulations for gasoline, as this will improve the assessment of the situation by independent petrol stations.
All administrative measures that could assist have already been implemented, states Kaufman; it remains either to increase imports or to restore production while preventing new attacks on refineries.
"Vedomosti" has sent inquiries to the Ministry of Energy, Ministry of Finance, and the FAS.
Source: Vedomosti
