Russia will adjust the mechanism of formation of prices for fuel from May 1

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Deputy Prime Minister Alexander Novak said that the government will adjust the parameters of the damper mechanism in the domestic fuel market.

Novak emphasized the importance of the mechanism for the market in terms of maintaining sufficient profitability in the retail segment, as well as keeping the growth of final prices within inflation. He noted that the need for a partial adjustment is caused by the current macroeconomic conditions, in particular, the rise in oil prices.

“At present, the Russian Ministry of Finance is preparing a corresponding draft law. It is planned that this mechanism will start working from May 1, 2021 in order to maintain marginality in retail and the stability of prices at gas stations, ”he said on the government website on Monday, March 15.

The Deputy Prime Minister also noted that the fuel companies are conscientiously fulfilling their instructions to fill and supply the domestic market with petroleum products in accordance with the growing demand.

On March 10, it became known that the Russian government decided to adjust the damper mechanism in order to improve the economy of the oil refining sector and index the prices inherent in it to the level of actual growth in retail prices.