Deputy Prime Minister Alexander Novak, following a meeting on the situation in Russia's petroleum products market, has directed relevant agencies to prepare a balanced action plan to maintain the stability of the domestic fuel market. This was announced on June 22 by the government press office. Vedomosti has investigated which initiatives may be included in this plan.

According to two sources familiar with the meeting's outcomes, the list of measures may include ensuring imports of motor fuel into Russia. The Ministry of Finance should adjust the damping mechanism in the fuel market to enable the government to make payments under it when importing petroleum products.

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

Another initiative that may be included in the government's plan, according to Vedomosti's sources, is the possibility of producing petroleum products in Russia with characteristics 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 technical regulation requirements regarding sulfur content and other quality indicators.

According to one of Vedomosti's sources, implementing these measures may take about a month. The plan will also include traditional measures, such as ensuring oil companies prioritize fuel supplies to the domestic market and maximizing the utilization of their production capacities.

Another aspect could be a temporary reduction—from July 1 to September 30, 2026—of the mandatory gasoline sales quota on the exchange from 15% to 10% of production volume. A corresponding draft joint order from the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been posted on the federal portal of regulatory legal acts. The volumes that will not go to the exchange are intended to be directed toward agricultural producers and other socially significant consumers, one of Vedomosti's sources stated.

Additionally, the government meeting presented the results of monitoring the domestic fuel market situation in terms of pricing. The FAS reported on measures being taken to prevent unjustified price increases for petroleum products and to curb violations of antitrust legislation.

Meeting participants also reviewed the situation with petroleum product supplies to regions and assessed the level of accumulated reserves. Representatives of oil companies reported on measures to saturate the domestic fuel market, maintain stable pricing, increase petroleum product output, and commission new production capacities.

Novak instructed the FAS to continue continuous monitoring of fuel prices and, if necessary, promptly take appropriate measures.

The fuel market stabilization plan is to be prepared taking into account existing regulatory mechanisms, the cabinet's statement noted.

The issue of paying the damping mechanism for gasoline imports is not about attracting supplies but about keeping domestic prices in check, given that gasoline and diesel prices on external markets are significantly higher, argues Igor Yushkov, an expert at the Financial University under the Government of Russia. Otherwise, gasoline at independent filling stations could cost tens of rubles more, agrees Sergey Kaufman, an analyst at Finam Group.

At the same time, subsidizing imports through the damping mechanism creates a dangerous precedent of financing foreign suppliers and could negatively affect Russian oil refining, believes Dmitry Prokofiev, Director of External Communications at NEFT Research. Lowering environmental standards for fuel production will have a limited impact, Kaufman believes.

Regulators should consider the possibility of centralized fuel purchases from far abroad using funds from the reserve fund, which are set aside in the federal budget for emergency government purchases, suggests Sergey Tereshkin, General Director of Open Oil Market. Also, in his opinion, it is important to maintain the current quotas for gasoline supplies to the exchange, as this improves the situation assessment by independent filling stations.

All possible administrative measures have already been implemented, Kaufman argues; the remaining options are either increasing imports or restoring production by preventing new attacks on refineries.

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

Source: Vedomosti