Russia Ministry of Energy: A mechanism for subsidizing fuel supplies to the Far East has been launched

The first batches of motor fuel were sent to the Far East, the cost of delivery of which was subsidized by the state.

The corresponding agreement on the establishment of preferential tariffs for the transportation of motor fuel by rail to the regions of the Far Eastern Federal District (FEFD) was signed on January 31, 2022 between the Federal Agency for Railway Transport (Roszheldor) and JSC Russian Railways. The first subsidized batches of motor fuel were sent to the regions of the Far Eastern Federal District on February 3.

The subsidy applies to motor fuel of the 5th environmental class (Euro-5), including AI-92 and AI-95 gasolines, diesel summer and winter fuel, and jet fuel.

According to the Rules for the provision of subsidies from the federal budget (approved by Decree of the Government of the Russian Federation of December 28, 2021 N2508), developed by the Ministry of Energy of Russia and agreed with the Ministry of Finance of Russia, the Ministry of Transport of Russia and the Federal Antimonopoly Service of Russia, the state will reimburse Russian Railways for unreceived expenses arising from as a result of the establishment of preferential tariffs for the transportation of motor fuel. In turn, Russian Railways provides a corresponding discount to the consignor in the amount of up to 4 thousand rubles per ton of fuel to the transportation tariff.

At the moment, up to 50% of all fuel consumed in the Far Eastern Federal District comes by rail from refineries in the Siberian Federal District and Central Russia. The subsidy is valid for all shipments issued from January 31, 2022 and works in the interests of residents of the FEFD regions – it is developed exclusively for consumers on the domestic market, respectively, it can only be provided for the volume of fuel that will be transported for sale on the FEFD domestic market. In addition, in order to exclude a speculative increase in the cost of such fuel, the Decree of the Government contains a list of stations from which preferential shipment will be carried out.

“The launched mechanism of discounts on fuel transportation by rail has several goals. First of all, it will have a restraining effect on the dynamics of wholesale prices and reduce pressure on retail in the regions of the Far Eastern Federal District. At the same time, the income of local independent small-scale wholesale and retail chains of filling stations will normalize, and therefore the situation with fuel supply will have to improve,” Pavel Sorokin emphasized.

The new fuel transportation subsidy has been developed to replace the previously existing “Far Eastern damper” mechanism, which provided for a surcharge of 2,000 rubles per ton on the reverse excise tax in the event that motor gasoline and diesel fuel are sold on supply bases located in the Far Eastern Federal District. For the work of the new subsidy, 9.8 billion rubles are provisionally allocated in the budget. in 2022, 8.9 billion rubles. in 2023 and 8.3 billion rubles. in 2024