Report: Russia to Freeze Gasoline Prices

The Associated Press ^ | Sep 19 1:43 PM US/Eastern | The AP

[.cnI redruM]

Russia's major oil producers agreed Monday to freeze their gasoline prices in the country until the end of the year, the Interfax news agency said, citing the Industry and Energy Ministry.

The oil companies made the decision at a meeting with Industry and Energy Minister Viktor Khristenko, Interfax quoted ministry spokesman Stas Naumov as saying. The ministry could not immediately be contacted Monday.

"The result of the meeting was a voluntary decision by the management of Russia's largest companies; prices won't rise any further on the domestic market until the end of the year," the official said, according to Interfax.

Surging oil prices worldwide have boosted the cost of gasoline in Russia, the world's second-largest oil exporter after Saudi Arabia, provoking criticism from Kremlin-loyal politicians. Gas prices rose by a ruble in the space of a week as of Tuesday, to 18 rubles ($0.63) per liter (0.26 gallon).

The biggest Russian crude oil producer, Lukoil, announced a unilateral cap on gasoline prices Monday with immediate effect. Another major oil company, TNK-BP, which is a 50-percent joint venture with British oil giant BP, declined to confirm the price freeze, but said it would make an announcement Tuesday.

"We support the government's efforts to ease up tensions on the fuel market," TNK-BP spokeswoman Marina Dracheva told The Associated Press.

In a statement, Lukoil blamed high mineral-resource taxes that are pegged to world prices, as well as under-investment in domestic refineries.

[jb6]

They won't run out of gas, nor will there be a shortage. Most people use public transportation to begin with, second, most goods are carried by rail not truck and gas prices have been rising not due to a higher demand but due to a higher price of oil per barrel.

[Tailgunner Joe]

Holy Crusader RussianConservative defends price controls? No, you wouldn't do that. Oh wait, I forgot, you are a protectionist so you would. Down with big oil! Soak the rich! Down with Boosh!

[jb6]

Considering that they are one of the biggest producers of gasoline in the world, I doubt it.

[Malsua]

So if we just nationalized all our oil companies and told them what they were allowed to import or export, we'd be fine. Sure, that worked really well for The Soviet Union, Cuba, East Germany, Bulgaria, Romania....

Nice Straw man.

First, you must have suplus domestic productions. If you import any significant percentage of oil, you will be affected by the fungible market. Last I checked, the US imports 60ish% of all oil.

Next, no where did I suggest that the US should nationalize oil production.

Your original post suggested that if Russia sets price controls, they will have shortages. This is a false premise if two conditions exist. 1. Surplus Domestic Production. 2. Export Controls.

What Russian Export controls will do is raise the prices for everyone else if Russian demand surges as it will dwindle global supply. It will however not affect available supply or price in Russia, up to and until they need to start importing, which is nowhere on their Horizon.

[Lazamataz]

September: "Report: Russia to Freeze Gasoline Prices."

January: "Report: Russia to Freeze."

[jb6]

Most Russian oil aren't state owned or nationalized.

[jb6]

The only one spitting in the eye of Bush at every opportunity is you and your leftist allies. But then you have no problems spending hours defending a little oligarch harlet and her billions while calling everyone who disagrees with you a traitor. That you would also be a free traitor more then happy to give away our nations resources to China and whom ever is rather fitting.

[.cnI redruM]

>>>>It will however not affect available supply or price in Russia, up to and until they need to start importing

Bzzzt.... Thanks for playing. Unless the Russian government refuses to let the Russian oil companies export, they will simply sell the oil elsewhere in order to maximize their return on the production cost.

[.cnI redruM]

Which means they won't sell domestically if the price is frozen. They'll take it abroad and maximize their profits.

[jb6]

They are required by law to service the domestic market to a certain percentage, you know, nations taking care of their own needs first.

[COBOL2Java]

Peter, Luke, John and Paul ... Jesus Christ, I gottem all! Sitting on the dashboard of my car....

Where's Ringo?

[jb6]

ping

[Tailgunner Joe]

I'm against trade with China. Sorry I don't fit your neocon-jew bogeyman cookie cutter image, but go right on with your constant lies and slander anyway, union thug.

[Tailgunner Joe]

jb6's new slogan: PRICE CONTROLS: Taking care of Russia's own needs first!

[Tailgunner Joe]

Of course they will solve the nasty little problem of the free market with ,yes that's right, more socialism!

More socialism will always solve all the problems caused by socialism!

[.cnI redruM]

And Walmart is required by law to hire only documented American citizens and resident aliens. I'm sure Russian oil companies will comply with that one to the letter.

Oh, and when you hire that kid across the street to cut your grass, you're required by law to pay at least minimum wage as well.

[KevinDavis]

Whatever Comrade..

[.cnI redruM]

That seems to be the prevailing attitude in Germany, why not Russia as well?

[Tailgunner Joe]

You believe the market should decide prices!? What are you some kind of "free traitor?"

[.cnI redruM]

Yeah, it's not fair if the prices aren't controlled to maximize social harmony.

All your price belong to us!