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The creation of a universal fuel supply operator for agricultural producers is being discussed by government agencies with a focus on the experience of Tatarstan.
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The creation of a universal fuel supply operator for agricultural producers is being discussed by government agencies with a focus on the experience of Tatarstan.

Authorities are discussing the creation of a universal fuel operator for agricultural producers, based on the experience of Tatarstan. The plan includes analyzing fuel prices and preventing an increase in prices at gas stations. Gasoline prices on the Saint Petersburg exchange have fallen due to market saturation and the cessation of its export, as well as improvements in railway deliveries.

18 April 2024 18 April 2024

Discussions about the possibility of creating a universal fuel supplier for agricultural organizations are taking place among relevant authorities, drawing on the experience of Tatarstan. Ministries have been given instructions on this issue, according to a source familiar with the results of a meeting on the oil products market held last week by Deputy Prime Minister Alexander Novak, as reported by the Interfax agency.

The Ministry of Energy, the Ministry of Agriculture, and the Federal Antimonopoly Service, together with the authorities of Tatarstan and interested organizations, should consider the feasibility of creating a universal operator for the supply of oil products to agricultural producers. It will be necessary to study this issue taking into account the experience of Tatarstan, said the agency source.

As previously reported, the "Republican Agro-Industrial Center of Investments and Innovations" operates in Tatarstan, which is the operator for the formation and use of the regional food fund. The company provides loans to rural producers, providing them with fuel, seeds, fertilizers, and chemical protection.

The Ministry of Agriculture, the Ministry of Energy, and the Federal Antimonopoly Service should analyze the dynamics of diesel fuel price changes from April to October 2017-2023 to determine the "benchmark" level of the cost of this fuel for agricultural producers in 2024. This analysis should be conducted both in the wholesale and retail segments, taking into account inflation, taxes, and government support in the form of subsidies for farmers and so on.

Oil producers are advised to strictly follow the Ministry of Energy's recommendations on fuel supplies. In particular, oil producers were required to submit a fuel supply plan for the next month for export and for the domestic market to the Ministry of Energy by April 15, ensuring priority for the latter. Additionally, oil producers must ensure the smooth loading of oil refineries and ensure the uniformity and regularity of trading oil products on the exchange.

Regarding the retail market, oil producers were tasked with preventing gasoline price increases at gas stations from exceeding the inflation rate. Meanwhile, the Federal Antimonopoly Service, the Ministry of Energy, and regional authorities must conduct a joint analysis of the reasons for the price increases at gas stations in the Zabaykalsky Krai.

The Ministry of Energy and the Federal Customs Service expect an assessment of the volumes of "gray exports" of oil products and coordinated proposals to prevent this.

The Ministry of Energy, the Federal Antimonopoly Service, and the St. Petersburg Commodity Exchange must present a "roadmap" for the development of the fuel spot market at commodity exchanges by May 15. In addition, the Ministry of Energy and the Federal Antimonopoly Service should consider increasing fines for improper fuel storage in tank cars. The Ministry of Energy, the Ministry of Transport, and Russian Railways must ensure timely unloading of fuel wagons in the regions.

Meanwhile, exchange prices for gasoline started to decline last week, and the decline has accelerated. Currently, the price of Ai-92 on the St. Petersburg Commodity Exchange has decreased by 6.9% to 48,773 rubles per ton, and Ai-95 has decreased by 9.2% to 55,215 rubles per ton compared to April 8.

Sources in the fuel market attribute this price drop to the saturation of the domestic gasoline market due to the ban on its export. As a result, the necessary reserves of the product were formed in Russia. Additionally, factors such as the suspension of active gasoline purchases by oil producers on the exchange and the improvement in the situation with railway deliveries of oil products across the country have contributed to the price drop.

Interlocutors of the agency also note that gasoline production looks better than expected, thanks to the rapid repair of oil refineries and the active purchase of MTBE by oil companies.

 

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