Fedun's proposed reduction in oil production will not cause an increase in prices at gas stations

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to Gazeta.ru on a possible reduction in oil production and optimization of oil refining in the Russian Federation.

The decline in oil production in Russia, which was proposed by the vice-president of Lukoil, Leonid Fedun, will not lead to an increase in the price of gasoline at gas stations in the country. This was reported to Gazeta.Ru by Alexey Gromov.

“There will be no rise in prices, we fully meet the needs of the domestic market in all types of petroleum products. The work of Russian oil refineries is structured in such a way that there will be fuel reserves for the domestic market even with a sharp reduction in exports and oil production,” Gromov explained.

Gromov added that Russia is already forced to reduce the volume of domestic oil refining due to the fact that domestic diesel fuel and fuel oil do not find buyers in foreign markets. Under these conditions, Russia needs to reduce the current excess level of raw material processing.

“Fedun's proposal has the right to exist, but, in my opinion, it is radical. A better option would be to reduce daily oil production in Russia to 8.5-9 million barrels,” Gromov said.