The Russian government has decided to postpone the doubling of payments to oil companies from July 1 under the damper mechanism (a scheme in which the federal budget pays oil producers extra if the export price of fuel exceeds a fixed price). domestic market). One of the main reasons for this was fear of rising motor fuel prices. informs newspaper “Kommersant” referring to industry participants.
The government did not pass a bill on damper adjustments until the end of May this year. The delay in reducing subsidies to local refineries (ORs) may last until the end of the season, when there is high demand for automotive fuel in the Russian domestic market, which is mentioned in the article.
“The Russian authorities cannot make a final decision on the revision of budget subsidies for oil refining. Despite the desire of the Ministry of Finance to halve the depreciation payment from July, the government did not pass the relevant bill in May and submitted it to the State Duma, which automatically changed the date of its entry into force. 1 August” material.
23 May Reuters, citing the source reportedThat the Russian government is considering the idea of a complete ban on gasoline exports to foreign countries. This measure can help prevent a possible fuel shortage in the domestic market.
Source: Gazeta
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