THE MINISTRY OF JUSTICE HAS REGISTERED A JOINT ORDER OF THE FAS RUSSIA AND THE MINISTRY OF ENERGY

To maintain stability in the domestic fuel market in the context of a recovery in demand for it at the beginning of 2021 the Russian Ministry of Energy and the FAS Russia developed amendments to a joint order, which provide for an increase in the standards for fuel sales on the exchange by companies occupying a dominant position. The amendments were registered by the Russian Ministry of Justice.

Mandatory volumes of gasoline sales increase from 10% to 11% of the level of its production by the participating company, diesel fuel - from 6% to 7.5%, liquefied petroleum gas - from 5% to 7.5%, kerosene - from 10% up to 11% and fuel oil - from 2% to 3%.

“The measure taken will make it possible to form an additional volume of fuel supply on the exchange by companies that sell it at the level of standards, which will increase buyers' confidence in the stability of shipments through the exchange sales channel. This decision should be considered as one of the elements of a comprehensive system of state regulation aimed at stabilizing the price situation and providing fuel to the regions of the country,” Nikolai Shulginov, Minister of Energy of the Russian Federation said.

Also in the framework of the joint order the authorities made clarifications on the criteria for attributing the volumes of petroleum products sold on the exchange to the set-off of mandatory sales standards, in particular, prohibiting the set-off of transactions conducted between affiliated market participants, dominant suppliers, and targeted transactions.

“Currently, we have given the necessary recommendations to companies to ensure the regularity and uniformity of the sale of oil products at exchange auctions, and to increase the volume of oil refining.The measures taken is an increase in production, an increase in stocks, an increase in sales on the stock exchange, will allow avoiding price changes above inflation,” Maxim Shaskolskiy, Head of the FAS Russia said.

Forreference:
The FAS Russia and the Ministry of Energy carry out daily monitoring of the situation with fuel supply and prices for motor fuel.Meetings of the Exchange Committee to the FAS and the headquarters at the Ministry of Energy are held weekly, in which all oil companies participate.Non-standard situations that arise are corrected in real time.