Medvedev came up with as the government to keep fuel prices

8 October 2018

Oil companies will receive subsidies for which they themselves pay

The government has formed a scheme of subsidized prices for gasoline and diesel fuel. It supposedly has already approved Prime Minister Dmitry Medvedev. While officially it is not announced, but the details of the agreement become famous RBC.

Energy companies and the oil industry have proposed to increase the budget subsidies on fuel. It is assumed that this mechanism, which is called "damping allowance", will start working in 2019.

It is assumed that such payments will help oil companies to keep retail gasoline prices within the inflation rate next year amid rising VAT, excise taxes, high export prices and a cheap ruble. Total subsidies are estimated at 600 billion rubles a year.

Generally, these funds will be obtained by increasing the severance tax (tax on the extraction of natural resources). Experts draw attention to the fact that the average vertically integrated oil companies (i.e. those that are engaged in the oil production and processing, and sales of fuel at retail) will not lose anything and not gain.

At the same time, this solution is disadvantageous to those who are engaged only in oil production: they grow up just met.