MOSCOW, September 15 Fuel prices have become an important factor in increasing inflation, they are now being adjusted to export prices and the new damper, said the head of the Central Bank of the Russian Federation Elvira Nabiullina.
“”Fuel prices are an important factor in inflation. Citizens pay more attention in the general price index to how fuel prices are rising… Fuel prices are now adjusted to both higher export prices and the new damping mechanism “, she said during a press conference following a meeting of the board of directors.
Nabiullina also noted that the Russian government is working to resolve the situation with rising prices associated with adjusting the damping mechanism. “We expect effective decisions to be made here,” added the head of the Central Bank.
Russia has passed a law to adjust the fuel damper, a mechanism created to curb domestic fuel prices. The document adjusts the damping mechanism in such a way that it reduces damper payments by 50% from September 1 of this year to December 31, 2026 for both gasoline and diesel fuel, explained Deputy Minister of Finance of the Russian Federation Alexey Sazanov.
According to previously interviewed experts, reductions in budget payments to oil companies will entail a further increase in wholesale fuel prices.
Meanwhile, the Bank of Russia earlier on Friday raised the key rate to 13% from 12% per annum. And by the end of the year it is predicted by the regulator in the range of 13-13.6%. “We need a higher trajectory of the key rate in order to achieve inflation of 4% by the end of next year,” said the head of the Central Bank Elvira Nabiullina at a press conference.