Russian government is against decline in domestic gas prices

Anti-crisis measures are none of workers’ concern

Russian Energy Minister Alexander Novak believes that it is impossible to reduce gas prices in the country. This statement, as reported by Izvestia, he made during an online meeting with the Duma faction leaders.

Fuel prices are growing
Fuel prices are growing

The minister briefly explained to the deputies the mechanism for the formation of domestic gas prices. He emphasized that thanks to him, fuel prices in Russia are not growing now. But they will not reduce them, even in the conditions of a sharp drop in oil prices.

We already wrote about how with the help of the damper mechanism the redistribution of funds received «from the pipe» occurs. Its action implies that no matter how external prices fluctuate, the retail price of gasoline within the country can only increase.

In order to prevent prices from dropping by market principles, the government is already restricting the import of cheap European gasoline into the country. And now they also confirm that they do not intend to deprive oil workers of revenues from domestic sales in the name of helping ordinary consumers, which would also mean depriving the Treasury of damper deductions.

Therefore, in the retail segment, only small and short-term price reductions are possible due to low demand due to the pandemic. Such fluctuations the Central Dispatch Department of the fuel and energy complex noted in 7 regions of the country, indicating that the average gas prices in the country fell by 3-4 copecks. But this trend, according to experts, will last only until the end of self-isolation, then the fuel will begin to “catch up” and by the end of 2020 can reach the mark of 50 rubles per liter of AI-95.

As we see, the leadership of the Russian Federation in its anti-crisis policy focuses on the needs of large capital. Therefore, oil tycoons will continue to receive profit and compensation, and, according to the authorities, for workers who suffer from the crisis a penny discounts on gasoline is good enough.