Deputy Prime Minister Alexander Novak, following a meeting regarding 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 by the government press service on June 22. “Vedomosti” identified potential initiatives that may be included in this plan.

According to two sources familiar with the results of the meeting, the action plan may include ensuring the import of motor fuels into Russia. The Ministry of Finance will need to adjust the damping mechanism in the fuel market so that the government can make payments under it when importing petroleum products.

At present, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission (EEC) council removed the import duty on gasoline, diesel, aviation, and marine fuel until June 30, 2026, which previously stood at 5%. In early June of this year, Russia proposed extending the zero import duty period until June 30, 2027.

Another initiative, which may be included in the government's plan, is allowing the production of petroleum products in Russia that deviate slightly from existing technical regulations, according to sources. “Kommersant” reported in mid-June that the government permitted certain refineries to produce gasoline and diesel fuel with deviations from the technical regulation requirements regarding sulfur content and other quality indicators.

One of the sources indicated that implementing these measures may take approximately one month. The plan will also include traditional initiatives, such as ensuring oil companies prioritize fuel supply to the domestic market and maximize their production capacities.

Another aspect may be a temporary reduction in the exchange sales quota for gasoline from 15% to 10% of production volume from July 1 to September 30, 2026. The 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 not sold at the exchange are expected to be directed to support agricultural producers and other socially significant consumers, said one of the sources.

Additionally, the meeting presented the results of monitoring the internal fuel market, particularly regarding pricing. The FAS reported on measures being taken to prevent unjustified price increases for petroleum products and to combat violations of antitrust legislation.

The participants also assessed the situation regarding petroleum product supplies to the regions and evaluated the level of accumulated reserves. Representatives from oil companies reported on actions taken to saturate the domestic fuel market, maintain stable pricing, increase petroleum production volumes, and bring new production capacities online.

Novak instructed the FAS to continue continuous monitoring of fuel prices and to take necessary measures promptly as needed.

The fuel market stabilization plan must be prepared taking into account existing regulatory mechanisms, as noted in the government statement.

Payment under the damping mechanism for gasoline imports is not merely about attracting supplies but rather about maintaining domestic market prices, as the cost of gasoline and diesel on external markets is significantly higher, argues Igor Yushkov, an expert at the Financial University under the Government. Otherwise, independent gas stations will charge significantly higher prices for gasoline, agrees analyst Sergey Kaufman from FNG “Finam.”

At the same time, subsidizing imports through the damping mechanism creates a dangerous precedent for financing foreign suppliers and may negatively affect Russian oil refining, says Dmitry Prokofyev, director of external communications at NEFT Research. The lowering of environmental standards in fuel production will have a limited impact, according to Kaufman.

Regulators should consider the possibility of centralized fuel procurement from abroad using resources from the reserve fund earmarked in the federal budget for emergency government purchases, believes Sergey Tereshkin, CEO of Open Oil Market. Additionally, he emphasizes the importance of maintaining current exchange supply regulations for gasoline, as this will enhance the situation assessment from independent gas stations.

Kaufman notes that all possible administrative measures that could help have already been implemented; hence, the options remain either to increase imports or to restore production by preventing further attacks on refineries.

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

Source: Vedomosti