EXPERTS ON GASOLINE PRICES IN RUSSIA

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MOSCOW, August 20 (RIA Novosti) - There will be no sharp rise of gasoline prices in Russia, believes the vice president of the Moscow Fuel Association, member of the Board of the Russian Fuel Union, Aleksei Nebolsin.

"There will be no sharp changes in gasoline prices, just as there will be no lines or lack of fuel in Moscow or in the regions," Mr. Nebolsin said at a Friday briefing.

In his words, gasoline prices in Moscow have stabilized, and they grow only in some regions.

"Gasoline prices will not change before September 1. Then the September wholesale prices will come, and retail prices will rise adequately to wholesale ones," said Mr. Nebolsin. In his words, gasoline prices in September somewhat rise.

He noted that wholesale gasoline prices have increased by 27%-30% since the year start, whereas retail prices have risen by 19-20%.

Speaking at the briefing, the executive director of the Russian Fuel Union, Grigory Sergiyenko, said the government has only one mechanism with the help of which stabilization of gasoline prices on the domestic market can be influenced.

"This mechanism is regulation of export duties," he said. In his words, an increase of the export duty on oil from August 1 has stabilized deliveries of oil products to the domestic market.

The vice president of the Moscow Fuel Association believes that the planned change of the export duty from early September "is conducted, in particular, to turn part of oil products to the domestic market."

Speaking about gasoline prices in Russia being almost the same as in the U.S., Mr. Nebolsin said: "We have been level-pegging with the States for a long time now. You only need to take into account what dollar rate we had earlier and what we have now. And we shouldn't forget about different schemes of taxation."

Commenting on the apprehensions that the gasoline price in Russia may reach the European level, the vice president of the Moscow Fuel Association noted that gasoline in Russia would cost 1 euro only when its price in Europe reaches 2-5 euros.

On Thursday Economic Development and Trade Minister German Gref reported about the government's intention to try to reduce the growth rates of prices for oil products in Russia. The minister said that the dynamics of these prices exceeds the expected indices, which became the reason for the lack of deflation in August.

"We will try to settle the situation, but we are not sure that we can do it efficiently," the minister said in reply to a RIA Novosti question. "I don't think that price growth can be fully stopped - we are world market participants."

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