Russian Prime Minister Dmitry Medvedev has instructed the Ministry of Energy and Deputy Prime Minister Dmitry Kozak with making oil companies to fix domestic prices for oil products – otherwise, the Prime Minister will impose prohibitive export tariffs. Medvedev demanded that the issue be solved within two days.
The Prime Minister had to adopt strict measures amid ‘numerous cases’ of rising petrol prices.
“The Kremlin is aware [of the situation] and we are closely following it, but it is the Cabinet that will handle this issue in this case”, Presidential spokesman Dmitry Peskov noted.
The fuel prices started growing in different Russian regions again in early October. Russia’s Accounts Chamber had previously announced that a 1.5-fold excise tax increase starting 2019 may lead to skyrocketing petrol prices. The lowering of petrol costs introduced on July 1, 2018 was not enough to drive down the outrunning prices that had been effective since January.
However, any interference in the market price adjustment can lead to considerable disparities, experts warn. In certain regions, the situation in the fuel market is so poor that small filling stations have gone bankrupt.
Currently, fuel retail price is close to €0.7 per liter in Central Russia.