Russia’s government was slow to react to rising domestic fuel prices but is now working on solutions with the nation’s oil producers, said President Vladimir Putin.
Road fuel has become more expensive in Russia as the country’s cabinet failed to react in a timely way to developments in the global markets, Putin said on Tuesday. The government’s decision to cut by half the subsidies Russian refineries get for supplying gasoline and diesel to buyers at home aggravated the problem, he said.
Retails gasoline prices in Russia as of Sept 4. jumped nearly 8% from the start of the year, according to the most recent data from the Federal Statistical Service. The retail diesel price grew by nearly 6%. Russia’s authorities have been exploring ways to limit pump prices, including recommendations for producers to reduce their own fuel shipments overseas, while mulling a ban on so-called gray exports by non-producers. The country plans to reduce diesel exports from its key western ports by a quarter this month, partly as a result of seasonal refinery maintenance.
“Whenever there is an opportunity to export some goods, their price will tend to be closer to the export one,” Sorokin said at the forum in an interview with Rossiyskaya Gazeta.
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