FAS will keep wholesale prices for liquefied gas at the same level

Upon an integrated evaluation of liquefied gas supplies, FAS has found it expedient to maintain the maximum wholesale prices for the household needs at the current level.

The current price set by No.143-e/b Order of the Federal Tariff Service of 15.05.2015 is 11 266 RUB per ton.

FAS monitoring of ex-works prices set by the producing plants demonstrates the following range of market price fluctuations in January – May 2017:

- In the course of exchange trading at “SPIMEX” JSC prices ranged from 12 651 RUB per ton до 17 210 RUB per ton, the average weighted price is 15 361 RUB per ton

- Registration of off-exchange transactions, according to EOIL.RU, gave the average prices of producing companies varying from 12 412 RUB per ton to 14 735 RUB per ton, the average weighted price was 13 582 RUB per ton.

In the future, achieving the parameters of liquidity, evenness and regularity of exchange trading, provided for by the joint order of FAS and the Ministry of Energy, creates preconditions for looking into the issue of abolishing government regulation of liquefied gas prices.

Currently government regulation of prices for liquefied gas is built up on the principles, described in the Concept for developing the market of liquefied gas for the household needs, approved by No. 908-r Decree of the Government of the Russian Federation of 3 July 2003. The concept provides for bringing the regulated wholesale price for liquefied gas to the level of market prices with further termination of government regulation of wholesale prices for liquefied hydrocarbon gas. Government regulation of prices for liquefied gas is performed in accord with the guidelines for regulating wholesale prices for liquefied gas for the household needs, approved by No. 312-e/8 Order of the Federal Tariff Service of 28.11.2006 (registered by the Ministry of Justice on 27 December 2006, the Registration Number 8675).

In 2015-2016 balance assignments for producers to supply liquefied gas on regulated wholesale prices were abolished. Most regions do not have liquefied gas supplied at regulated prices, which force suppliers to buy it at non-regulated prices.