The Russian Cabinet of Ministers has opened a broad, ongoing discussion about fresh tools and strategies designed to slow the rise of gasoline and diesel prices, particularly as demand begins to climb in the peak season. This is the backdrop for a broader push to stabilise fuel costs and ensure reliable supplies for households and businesses alike across the country, with a focus on practical measures that can be implemented without disrupting production or distribution networks.
Draft minutes from the April 2 meeting show Deputy Prime Minister Alexander Novak advocating for a shift away from the existing practice where vertically integrated oil companies trade petroleum products among themselves on the stock exchange. The goal is to reduce price volatility by changing how these firms manage their product flows and pricing signals during times of heightened demand. In place of inter-company stock trades, Novak encouraged moving toward contracting based on auction-driven prices, which could reflect real-time market conditions and improve price transparency for end users.
At present, the industry’s leading producers are obligated by policy to sell a portion of their gasoline and diesel output on the stock exchange—specifically about 15 percent of gasoline and 16 percent of diesel. This framework was established to ensure a baseline level of competition and to introduce a counterweight to market power held by a handful of large suppliers. The policy aims to channel supply into diverse channels, potentially widening access to fuel at competitive prices and reducing the risk that a small number of players can dominate pricing during spikes in demand.
These stock-exchange quotas are intended to be sufficient to meet the needs of independent fuel stations that are not tied to the biggest producers, ensuring consistent access to gasoline and diesel across different regions. However, observers note that producers may find ways to navigate these requirements, including circumventing the auction system by purchasing from other competitors. The practical implication is that the regulatory framework must be clear, enforceable, and adaptable to evolving market dynamics to prevent loopholes that undermine the intended price stability for consumers and businesses alike.
In early April the Ministry of Energy issued statements emphasising that Russia maintains ample production capacity and gasoline reserves to satisfy demand even during periods of elevated consumption. Officials highlighted the resilience of the supply chain, stressing that current output levels and strategic reserves should keep prices from spiking and ensure motorists can obtain fuel without unusual shortages. The ministry underscored their commitment to monitoring market conditions, coordinating with refining and distribution networks, and adjusting policy levers as needed to maintain steady supplies across the country during seasonal peaks and regional surges in demand.