CURRENT FUEL MARKET ENVIRONMENT

On November 8 - 14, the environment in the oil products market has improved. For example, sustainable on-exchange fuel sales are observed, the positive trend is set by the facilities of “Rosneft” and “Gazprom”, and “Gazpromneft” and “Lukoil” trade in the basic mode. Every day, 25,000 to 33,000 tons of petrol and 25,000 to 30,000 tons of diesel fuel are traded.

Speaking at FAS Exchange Committee, Deputy Head of FAS Anatoly Golomolzin pointed out:

“Starting from Friday (9 November) on-exchange prices began to go down. Based on the trading results on 14 November, price reduction was: 0.35% for AI92, 1.65% for AI95, more than 1% for inter-seasonal diesel fuel, 1.3% for winter diesel fuel, around 6% for fuel oil, and 1.43% for liquefied hydrocarbon gas.

Prices also went down on the external market, which influenced Net Back reduction. Fuel supplies to the domestic market also became top grade on all other commodities, including petrol and diesel fuel.

Consequently, economic preconditions and incentives were formed for attractive fuel supplies to the domestic market in comparison with export and saturating the domestic markets with fuel in sufficient quantities.

In its turn, the domestic market environment is balanced across the entire chain: large wholesale, small wholesale and retail on 92 and 95 petrol, as well as large wholesale and small wholesale of inter-seasonal winter fuel. The transition to winter (inter-seasonal) diesel fuel is accompanied by the relevant price growth. In view of the growth of prices for winter diesel fuel at fueling stations, the balanced small wholesale and retail sales of diesel fuel are also restoring.

The totality of economic factors and conditions creates prerequisites for maintaining stable domestic market environment preventing unreasonable growth of fuel prices”.