Government of the Republic of Tatarstan

Tatarstan leadership is controlling the situation at retail fuel market in republic

23 September 2011, Friday

On September,22 by the order RT President R.N.Minnikhanov Chief of GBU “Management for efficient use of fuel and energy resources” - Chairman of working group on monitoring oil prices Gilyaziev R.F. officially explained the situation with recent increase of motor fuel retail prices in republic.

It was noted that since 2008 a Working group for monitoring oil prices has been functioning in Tatarstan. The group includes officials of RT President Staff, RT Cabinet, major subjects of fuel market, such as Tatneft, Tatnefteprodukt-holding, TAIF, and RT Associations of oil – supply enterprises which represent interests of small and medium business.

The working group daily analyses motor fuel market in Tatarstan, monitors level of wholesale and retail prices for motor fuel in republic and regions of Volga federal district. It also analyses influence of motor fuel price on cost of minimum consumption basket, size of consumer budget and living wage.

In the second quarter of 2011 in the period of growth of fuel deficit RT President R.N.Minnikhanov set the task before the Working group and oil – supply subjects to prevent situation with motor fuel deficit. The task was fulfilled.

According to the analysis currently there are several macroeconomic causes of rise in retail prices for motor fuel throughout Russia. Certain increase of wholesale prices took place in September at Russian oil-refining plants. Some plants stopped working because of scheduled repair including JSC “TAIF-NK” in Nizhnekamsk. Republican oil – supply subjects purchased a considerable part of fuel (about 60 %) at this plant. Thus, they had to purchase motor fuel in Ufa, Nizhny Novgorod, Perm and other regions.

Expenses for fuel transportation increased because of rise in sale prices. Moreover, the domestic price of the product in Russian Federation also increased. Therefore, rise in retail prices was caused by objective external factors. Notwithstanding this situation the level of retail prices for the fuel is still lower than the average maximum prices in Volga federal district.

RT President press service

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