MOSCOW, September 16 (RIA Novosti) - Gas prices will continue to rise in Russia alongside world gas prices if oil taxation is not modified, the executive director of the Russian Fuel Union said Friday.
Grigory Sergiyenko said, "Domestic prices will continue to rise unless the government and the State Duma [lower chamber of parliament] take drastic measures in the taxation sector."
He admitted that world oil prices had stabilized and even begun to decline. However, he did not rule out the possibility of a new upsurge.
Sergiyenko said the mineral resource tax should no longer be factored into oil export prices. "If this proposal made by the Ministry of Economic Development and Trade is backed, it will positively affect the dynamics of Russian gas prices," he said.
He also said it was necessary to introduce the system of differentiation of excise taxes on gas to encourage competition on the gas market.
Sergiyenko said domestic gasoline prices would follow the trend on the world market starting October 1. Additionally, an oil export tariff will be levied at $180 per metric ton in October, which will restrict exports and consequently increase domestic supply.
Prices for fuel and lubricants have soared by 50% since the start of the year against the inflation-oriented scheduled rate of around 10%.
Gas prices jumped by almost a ruble ($0.03) in the past week in Moscow, with the retail price for premium gas exceeding 18 rubles ($0.63) per liter.
