Deputy Prime Minister Alexander Novak, following a meeting regarding the situation in the Russian oil products market, instructed relevant agencies to prepare a balanced action plan to maintain the stability of the domestic fuel market. This was reported by the government press service on June 22. “Vedomosti” has explored which initiatives may be included in this plan.

According to two sources familiar with the meeting's outcomes, the action plan may involve ensuring the import of motor fuel into Russia. Additionally, the Ministry of Finance must adjust the damping mechanism in the fuel market so that the government can make payments related to the import of petroleum products.

Currently, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission (EEC) council eliminated the import tariff on the supply of gasoline, diesel, aviation, and marine fuel until June 30, 2026; prior to this, the tariff rate was 5%. In early June of this year, Russia proposed extending the zero import tariff until June 30, 2027.

Another initiative that may be included in the government plan is the possibility of issuing petroleum products in Russia with specifications that deviate somewhat from the current technical regulations. “Kommersant” reported in mid-June that the government has permitted certain oil refineries to produce gasoline and diesel that do not fully comply with the technical regulation regarding sulfur content and other quality indicators.

According to one of the sources, the implementation of these measures may take about a month. The plan will also encompass traditional measures, such as ensuring that oil companies prioritize fuel supplies for the domestic market and maximizing their production capacity utilization.

Another aspect could be a temporary reduction of the gasoline sales norm on the exchange from 15% to 10% of production volume between July 1 and September 30, 2026. A corresponding draft joint order from the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been published on the federal regulatory legal acts portal. The volumes not delivered to the exchange are expected to be directed to meet the needs of agricultural producers and other socially significant consumers, as stated by one source.

Additionally, at the government meeting, monitoring results on the internal fuel market related to pricing were presented. The FAS reported on the measures being taken to prevent unjustified price increases for petroleum products and to combat violations of antimonopoly legislation.

Participants of the meeting also reviewed the situation regarding the supply of petroleum products to the regions and assessed the level of accumulated reserves. Representatives of oil companies reported on their efforts to saturate the domestic market with fuel, maintain a stable pricing situation, increase production volumes of petroleum products, and commission new production facilities.

Novak instructed the FAS to continue ongoing monitoring of fuel prices and to quickly take necessary measures if needed.

The plan for stabilizing the fuel market is to be prepared in accordance with existing regulatory mechanisms, as noted in the cabinet's message.

Payments under the damping mechanism for gasoline imports are a matter of price maintenance in the domestic market, rather than sourcing supplies, as the cost of gasoline and diesel in foreign markets is 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, an analyst at FG "Finam."

Moreover, subsidizing imports through the damping mechanism creates a dangerous precedent for financing foreign suppliers and may negatively affect Russian oil refining, believes Dmitry Prokofiev, director of external communications at NEFT Research. The reduction of environmental standards for fuel production will have a limited impact, according to Kaufman.

Regulators should consider the possibility of centralized fuel procurement from abroad using the funds from the reserve fund, which are allocated in the federal budget for emergency government purchases, suggests Sergey Tereshkin, CEO of Open Oil Market. He also believes it's crucial to maintain the current sales norms for gasoline on the exchange, as this will improve the situation assessment for independent gas stations.

All administrative measures that could help have already been implemented, argues Kaufman; the options now are either increasing imports or restoring production by preventing new attacks on refineries.

“Vedomosti” has sent inquiries to the Ministry of Energy, the Ministry of Finance, and the FAS.

Source: Vedomosti