Petroleum Products Price Freeze – a Halt on Fiscal Manoeuvre?

Alexandra M. Zhemkova - Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Georgy I. Idrisov - Director of the Center for Real Sector of the Gaidar Institute; Director of Institute for Sectoral Markets and Infrastructure, Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Andrey S. Kaukin – Head of Department for System Analysis of Sectoral Markets, Russian Presidential Academy of National Economy and Public Administration; Head of Sectoral Markets and Infrastructure Department of the Gaidar Institute, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Eugenia M. Miller – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In November 2018, Russia’s Federal Antimonopoly Service (FAS Russia) and Ministry of Energy (MinEnergo) came to an agreement with Russian oil companies to freeze petroleum products prices in the country until March 2019, which may be a headwind for fiscal regulation policies in the Russian petroleum industry. The today’s fiscal manoeuvre parameters coupled with the price freeze are not considered optimal in terms of benefits and costs for all the market participants, namely the state, oil companies, consumers.

Key words: oil, petroleum products, oil prices, freezing oil prices, tax maneuver.