Novak forecasts fuel price growth at the end of the year not higher than inflation

Fuel prices will not rise above inflation at the end of the year. This was announced by Deputy Prime Minister of the Russian Federation Alexander Novak on December 25.

He noted that the fuel market of the Russian Federation is fully provided with gasoline and diesel fuel.

"We are carefully watching so that prices do not grow above inflation. <...> And this year, too, prices will not be indexed above inflation in general, which, in principle, allows us, let's say, to keep them at a fairly low level compared to the export alternative," he said in an interview with Rossiya 24 TV channel.

In addition, he predicted that the demand for oil in 2024 will grow by 1.2 million barrels per day, the next year will grow by 1-1.5 million. In addition, according to Deputy Prime Minister, the oil and gas industry of Russia in the next two to three years will become 90% independent of technology imports.

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Earlier, on November 3, OPEC+ countries decided to extend the reduction in oil production until the end of December. It is specified that the states agreed to extend the adjustments by 2.2 million barrels per day. December 13, Russia extended until June 30, 2025, the ban on the supply of oil and petroleum products from Russia on the price ceiling.

Before that, on September 26, Novak reported that the situation in the fuel market of the Russian Federation will remain stable until the end of the year, and fuel prices will grow within the inflation rate. In addition, then he said that Russia expects the global demand for oil to grow by 1.5 million barrels per day compared to last year. This demand will be met by OPEC+ member countries and states that are not members of the organization.

On the same day, Russian President Vladimir Putin said that the country has launched a program to modernize oil refineries, which is necessary to provide businesses and citizens with quality fuel. The head of state noted that one of the main tasks facing the fuel and energy complex (FEC) of the Russian Federation is to increase the volume of hydrocarbon processing directly on the territory of the country.