Deputy Prime Minister Alexander Novak, following a meeting on the situation in the Russian petroleum products market, instructed relevant agencies to prepare a balanced action plan aimed at maintaining the stability of the domestic fuel market. This was reported on June 22 by the government press service. "Vedomosti" has determined which initiatives may be included in this plan.

According to two sources close to the meeting, the list of measures may include ensuring the import of motor fuel into Russia. Meanwhile, the Ministry of Finance is to adjust the damping mechanism in the fuel market so that the government can make payments on it when importing oil products.

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

Another initiative that may be included in the government plan, according to sources, is the possibility of producing oil products in Russia with specifications that deviate somewhat from the current technical regulations. "Kommersant" reported in mid-June that the government allowed certain refineries to produce gasoline and diesel fuel with deviations from the sulfur content and other quality indicators required by regulations.

One source indicated that it might take about a month to implement these measures. The plan will also encompass traditional actions, such as ensuring that oil companies prioritize fuel supplies to the domestic market and maximizing their production capacities.

Another aspect may be a temporary reduction – from July 1 to September 30, 2026 – of the sales norm for gasoline on the exchange from 15% to 10% of production volume. The relevant joint order project from the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been posted on the federal portal for regulatory legal acts. The volumes not supplied to the exchange are expected to be directed to meet the needs of agricultural producers and other socially significant consumers, according to one source.

Additionally, the meeting presented the results of monitoring the domestic fuel market regarding price formation. The FAS reported on measures taken to prevent unjustified price increases for petroleum products and to address violations of antitrust legislation.

Participants in the meeting also reviewed the supply situation for petroleum products in the regions and assessed the level of accumulated reserves. Representatives of oil companies reported on measures to saturate the domestic fuel market, maintain a stable pricing situation, increase production volumes of petroleum products, and launch new production capacities.

Novak instructed the FAS to continue monitoring fuel prices continuously and to take necessary measures promptly when deemed necessary.

The fuel market stabilization plan must be prepared considering the existing regulatory mechanisms, as noted in the government communiqué.

The payment under the damping mechanism for imported gasoline is not about attracting supplies but about maintaining prices in the domestic market, as the cost of gasoline and diesel on foreign markets is significantly higher, argues Igor Yushkov, an expert from the Financial University under the Government of the Russian Federation. Otherwise, gasoline prices at independent gas stations would be significantly higher, agrees analyst Sergey Kaufman from FG "Finam."

At the same time, subsidizing imports through the damping mechanism creates a dangerous precedent for financing foreign suppliers and may have negative implications for Russian oil refining, considers Dmitry Prokofiev, Director of External Communications at NEFT Research. The reduction of environmental standards in fuel production is expected to have limited impact, according to Kaufman.

Regulators should consider the possibility of centralized fuel purchases from abroad using funds from the reserve fund reserved in the federal budget for emergency government purchases, suggests Sergey Tereshkin, Director General of Open Oil Market. He believes it is also important to maintain current gasoline supply standards on the exchange, as this would improve the assessment of the situation by independent gas stations.

"All administrative measures that could help have already been implemented," argues Kaufman; the remaining options are either an increase in imports or a restoration of production by preventing new attacks on refineries.

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

Source: Vedomosti