Decision on exact volumes of LPG sales on stock exchange to be made by September 2014

The Ministry of Energy and the Federal Antimonopoly Service of Russia suggest introducing the minimal volume of liquefied petroleum gas (LPG) sales on the stock exchange market to set the basic market prices for LPG.

Such a measure is necessary for the price demonopolization of this segment of the market where the prices are in fact determined by the three large companies – basic LPG producers (Gazprom, Novatek and Sibur).

The stimulation of the stock exchange sales by the products of oil and gas processing aimed at the market price demonopolization started in July 2013 with the putting into action the joint order of FAS and the Ministry of Energy on the obligatory sales of oil products on the stock exchange market. The players of this segment should sell 10% of the volume of produced fuel, 5% of diesel fuel, 10% of jet fuel and 2% of grease oil on the stock exchange market. The volume of stock exchange sales by these products in 2013 reached 14.5 mln tons.