The Federal Antimonopoly Service (FAS) expects that: the dynamics of gasoline costs in the Russian Federation will be within or below inflation by the end of 2022 even taking into account the adjustment of the fuel damper since September, reports TASS with reference to the deputy head of the federal anti-monopoly service Vitaly Korolev.
Since retail fuel prices have not changed for a long time and were significantly below inflation, the cumulative effect will also be at or below inflation by the end of the years.
“If it is proposed to postpone the adjustment, [демпфера] before 2023 we will be against it as it will worsen the situation in the market and we will again absorb the risks of price growth. We definitely don’t need it,” Korolev added.
Remember that the damping mechanism equalizes prices: if the export prices for petrol and diesel are higher than the conditional domestic prices, then the state compensates the producers for part of this difference, otherwise oil companies transfer part of the profits to the budget. The Treasury Department adjusted the damping mechanism from September to December 31, 2022 so that payments to oil workers fell significantly.
Source: Z R
