Deputy Prime Minister Alexander Novak, following a meeting regarding the situation in the Russian petroleum products market, has tasked the relevant agencies with preparing a balanced action plan to maintain the stability of the domestic fuel market. This was reported by the government's press service on June 22. Vedomosti has learned what initiatives might be included in this plan.
According to two sources familiar with the meeting's outcomes, the list of actions may include ensuring the import of motor fuel into Russia. In this context, the Ministry of Finance is expected to adjust the damping mechanism in the fuel market, allowing the government to execute payments upon the importation of petroleum products.
Currently, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission's council nullified the import duty for gasoline, diesel, aviation, and marine fuel supplies until June 30, 2026; previously, the duty rate was set at 5%. In early June this year, Russia proposed to extend the zero import duty until June 30, 2027.
Another initiative that may be incorporated into the government's plan, according to sources, is the possibility of producing petroleum products in Russia that slightly deviate from existing technical regulations. Kommersant reported in mid-June that the government allowed certain refineries to produce gasoline and diesel fuel with deviations from technical regulation requirements regarding sulfur content and other quality indicators.
One source indicated that the implementation of these initiatives may require about a month. The plan will also include traditional measures, such as ensuring that oil companies prioritize fuel supplies to the domestic market and maximize their production capacities.
Another aspect may involve a temporary reduction— from July 1 to September 30, 2026— of the gasoline sales standard on the exchange from 15% to 10% of production volume. The draft joint order from the FAS and the Ministry of Energy is available on the federal portal of regulatory legal acts. The volumes not sold on the exchange are expected to be directed to support agricultural producers and other socially significant consumers, stated one of Vedomosti's sources.
Additionally, the government meeting reviewed the results of monitoring the fuel market in terms of pricing. The FAS reported on measures taken to prevent unreasonable price increases for petroleum products and to address violations of antitrust legislation.
Participants also assessed the situation regarding the supply of petroleum products to regions and evaluated the level of accumulated reserves. Representatives from oil companies reported on efforts to saturate the domestic market with fuel, maintain a stable pricing situation, increase the production volumes of petroleum products, and bring new production capacities online.
Novak instructed the FAS to continue ongoing monitoring of fuel prices and to take necessary measures promptly if needed.
The fuel market stabilization plan is to be prepared considering the existing regulatory mechanisms, as noted in the government statement.
The payment under the damping mechanism for gasoline imports is a matter of not attracting supplies, but of maintaining prices in the domestic market, as gasoline and diesel prices in external markets are significantly higher, argues Igor Yushkov, an expert at the Financial University under the government. Otherwise, gasoline at independent gas stations will cost tens of rubles more, agrees Sergey Kaufman, analyst at FG "Finam."
However, subsidizing imports through damping creates a dangerous precedent for funding foreign suppliers and may negatively impact Russian oil refining, warns Dmitry Prokofiev, director of external communications at NEFT Research. The reduction of environmental standards in fuel production will have a limited impact, Kaufman believes.
Regulators should consider the possibility of centralized fuel purchases from abroad using funds from the reserve fund, designated in the federal budget for emergency government procurements, argues Sergey Tereshkin, CEO of Open Oil Market. Additionally, it is important to maintain the current fuel supply standards to the exchange, as this will improve the assessment of the situation by independent gas stations.
All administrative measures that could assist have already been implemented, Kaufman reflects; it remains either to increase imports or to restore production by preventing new attacks on refineries.
Vedomosti has sent inquiries to the Ministry of Energy, Ministry of Finance, and FAS.
Source: Vedomosti
