The Russian government is not considering a complete ban on fuel exports, as there is no need for this because price fluctuations are seasonal, the Energy Ministry told Interfax.The situation on the domestic oil products market remains under control, the ministry said. “The fuel market remains in surplus and demand for oil products is fully covered. The Energy Ministry, FAS [Federal Antimonopoly Service] and oil companies realize the importance of price stability and are taking the necessary measures to maintain a balance,” it said.”In the summer period we traditionally see growth of demand for fuel, which in a market economy is reflected on the dynamic of wholesale prices. With the aim of additional stabilization, oil companies have reduced export volumes, redirecting fuel to the domestic market. This will make it possible to increase supply in exchange trading in July and August,” the ministry said.

“Furthermore, oil companies are adhering to a policy of transparent pricing, giving market signals about fair price levels at the start of trading sessions. This is helping to prevent unreasonable growth of demand and minimizing the risks of price speculation,” it added.Current supply on the exchange is sufficient and there are no acute problems with logistics and fuel supplies, the ministry said.”The issue of imposing a complete ban on fuel exports is not being considered at present, since the situation remains manageable. However, this measure might be considered by the Russian government if there is such an initiative from market participants.

There is no need for such actions at the moment, as the price fluctuations we are seeing are of a seasonal nature,” it said.The ministry also said that the profit margins of filling station operators remain comfortable, “which points to the stability of the fuel market and effectiveness of government regulation measures.””The Energy Ministry of Russia continues to monitor the situation is ready to promptly respond to any changes in the market situation,” it said.mrchub.com

Source: Reuters