Russia May Introduce Moratorium on Resetting Diesel Fuel Dampening Payments

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The Russian government is discussing with relevant ministries the possibility of introducing a moratorium on resetting fuel price stabilization payments (known as "dempfer") for diesel fuel, according to Kommersant.

This measure is being considered in connection with the partial reopening of diesel fuel exports. It could act as an insurance mechanism for oil companies that are incurring costs related to refinery repairs. However, experts believe that this could increase pressure on domestic market pricing.

• The government provides dempfer payments as subsidies to oil companies to help control domestic fuel prices when export prices are higher than domestic ones. However, these payments are reset to zero if the average monthly wholesale prices of AI-92 gasoline and diesel exceed the indicative levels by 20% and 30%, respectively.