Energy minister reports to Vladimir Putin.
Russia has the resources to keep prices for fuels reasonable. We must rule out any speculation, the prime minister told Energy Minister Sergei Shmatko.
Fuel prices have reluctantly started down after Vladimir Putin threatened oil producers with a third wave of anti-monopoly investigations at a meeting in St Petersburg. Prices of different kinds of fuels dropped by 3.5%-4.4%, with diesel fuel plunging by a record 8%.
"I would like to note that these prices have declined even against a backdrop of rising export prices, or the export alternative on global markets, to be more precise. It turns out that global petroleum, oil, and lubricant prices continue to grow, while Russia has managed to find a way to lower them," Shmatko said.
"We need market-based and economically sound prices. As I have already said, we have no intention of undermining the economy of our oil companies. But we must rule out any speculation and corporate collusion whatsoever," the prime minister replied. "I urge you and the Federal Antimonopoly Service to continue this work."
Electricity prices are a major concern. The Energy Ministry has obviously learned last year's lessons, when electric bills were surging quite out of control. They will now be monitoring electricity prices nationwide, Shmatko said.
"Average nationwide prices were expected to increase by no more than 15%. I would like to tell you that we have kept to these parameters in January-February, 2011. Nevertheless, I would like to note that numerous regions have posted 30-40% price hikes for electricity," he told Putin.
"The average price hikes range from 7-9% and reach over 35% in some regions. People living in regions posting 35% price hikes don't care that prices have increased by only 9% elsewhere. Do you understand?" Putin did not sound satisfied with the minister's report. "We must strive to hit 15% in an overwhelming majority of regions. Naturally, this ceiling can be a bit higher in some cases, for objective reasons, but it can't get out of hand."
The ministry has developed a set of measures to cut prices. Work has already begun in the regions to reduce the prices of energy transportation in the local distribution grids.
Putin considers liquefaction plant on Black Sea coast in addition to South Stream pipeline
The prime minister asked the Energy Ministry to consider building a gas liquefaction facility on the Black Sea coast, in addition to the planned South Stream pipeline intended to carry natural gas across the Black Sea.
"You and I both realise that the construction of gas liquefying plants opens up additional opportunities for market diversification," Putin added. "At the same time, we need to talk to our European colleagues and discuss prospects for jointly assessing projects as regards the construction of liquefied gas terminals, liquefaction facilities and channeling gas into the transport networks of our European partners."
Anastasia Savinykh