Following the implementation of a restriction on petrol and diesel exports, Russian President Vladimir Putin instructed his cabinet on Wednesday to ensure that retail fuel prices stabilise. He also sought more steps to balance the domestic market.
Putin orders government stabilise fuel prices: Putin also advised the cabinet to move quickly and mentioned the possibility of reconsidering taxes related to the oil industry.
In an effort to contain a spike in domestic fuel prices, the government on Thursday imposed a temporary ban on the export of petrol and diesel to any nations outside of a circle of four former Soviet states.
“The local commodity exchange initially saw a decline in prices, but after the announcement of some relaxation of restrictions over the weekend, prices began to rise again.” Consumers want results, according to Putin.
I’d like you to respond to things more quickly.
Alexander Novak, the deputy prime minister, informed Putin that other regulations had been under consideration.
According to him, there are plans to limit the export of grey fuel and increase the duty on gasoline exports for resellers from 20,000 roubles to 50,000 roubles ($518.24) per tonne.
According to him, the government is also rethinking a reduction in the so-called damper payments, or subsidies to oil refineries, that started this month. Recently, there have been petrol and diesel shortages in Russia.
Although retail prices are restricted to try to keep them in line with the official rate of inflation, wholesale fuel costs skyrocketed.
In some regions of Russia’s southern breadbasket, where gasoline is essential for harvesting, the crunch has been particularly acute.
Given that there will be a presidential election in March, a big crisis could cause the Kremlin some trouble.