Moscow: In a decisive move aimed at bolstering domestic energy stability, Russia has suspended the planned reduction in its fuel damper payment subsidy to oil refineries, keeping the current support in place until May 1, 2026. The announcement, confirmed by Russian news agencies, reflects the government’s proactive approach to ensuring affordable fuel availability during the critical winter months.
The fuel damper payment is a government initiative designed to incentivize refineries to sell petroleum products within Russia rather than exporting them at higher international prices. By offering this financial support, Moscow seeks to safeguard domestic consumers against price volatility and guarantee consistent energy supply across the nation.
Under the new decree, the calculation of the fuel damper payment for gasoline and diesel will temporarily exclude the deviation threshold, allowing refineries to receive the full subsidy regardless of production deviations. Additionally, the decree provides an excise duty exemption for winter fuel oil produced by mixing various fuel types with jet fuel outside refinery facilities. This measure is intended to ensure sufficient production of winter-grade fuel, which is vital for heating and energy needs during harsh Siberian winters.
Analysts suggest that this extension of the subsidy will help maintain stable fuel prices, prevent shortages, and encourage refineries to prioritize domestic sales. The Russian government’s decision highlights its ongoing efforts to manage the energy market strategically, especially during periods of heightened demand and potential global market fluctuations.
The decree also underscores Russia’s broader energy policy focus: balancing domestic needs with the dynamics of international fuel markets while providing financial relief to key industrial players in the refining sector.