Russia Delays Oil Subsidy Doubling Amid Domestic Fuel Price Concerns

The Russian government has signaled a postponement in doubling the payments to oil companies from July 1, citing concerns about potential rises in motor fuel prices. This pause is tied to the damper mechanism, a policy where the federal budget provides extra subsidies to oil producers when export prices exceed a fixed domestic level, a move meant to stabilize the home market. Industry insiders cited by Kommersant explain that the delay aims to curb domestic price pressures as the summer driving season begins and demand for fuel strengthens across Russia. Reuters also reported this development as of late May, highlighting the government’s hesitation to change subsidy levels amid volatile market signals and political calculations about domestic affordability.