Fuel Union promises stable gasoline prices in Russia

The situation with gasoline prices will remain stable on the Russian marketuntil the end of 2002, executive director of the Moscow Fuel AssociationGrigory Sergiyenko, who is also the executive director of the Russian FuelUnion, announced at a meeting with journalists today. He stated that thesituation with fuel prices had stabilized in the past five weeks ascompared to a rise in prices in the first half of 2002. The situationstabilized by July 1 and will not see noticeable changed before the end ofthe year. Sergiyenko noted that prices could increase by RUR 0.10-0.15 perliter. The official stressed that no rise in prices was forecasted at theend of September, despite seasonally high demand on gasoline, owing to thecorrect customs policy of the Russian government.According to the executive director, the future situation on this marketwill depend on changes on excise duties to be introduced to the tax code.On January 1, 2003 excises on motor oil are expected to be raised by 45percent and these payments will be made by retail sellers. According toexperts from the Russian Fuel Union, this measure may result in a10-percent rise in retail gasoline prices..

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