Russia Poised to Prevent Fuel Price Hike in 2023 Above Inflation — Deputy PM

This task has been exceeded this year, says Alexander Novak

© Elena Afonina/TASS

MOSCOW, December 24. /TASS/. Russia was able to keep the fuel price down in 2022, as gasoline prices went up by only 0.6% and diesel prices grew by 8.4% with inflation at 11.1%, and in 2023 Russia intends to avoid an increase in the price above inflation, Russian Deputy Prime Minister Alexander Novak said in an interview with TASS on Saturday.

"Next year, we alongside the Federal Anti-Monopoly Service will be closely monitoring so that an increase in the price will not exceed inflation. For this purpose, we have a damper, which is a unique tool that smooths out fluctuations in global prices," he said.

"Our strategic goal is to keep the rising price of petroleum products in the domestic market no higher than inflation. This task has been exceeded this year. With inflation at 11.1%, gasoline became more expensive by only 0.6% and diesel - by 8.4%," Novak added.

Impossible to cut Russia off from global energy market

Russian Deputy Prime Minister also claimed, that it is impossible to replace Russia or cut it off from global energy market, for the country is the largest energy player.

"It is obvious that energy consumption will be only growing in the future, so I cannot imagine how the world economy will do without our energy resources. No one can stand in for us, as it is impossible. Moreover, I cannot see the world without our participation, without our expertise. In this way, we are optimistic and set ourselves only ambitious goals," he stated, highlighting that Russia is the largest energy player. "It is 20% of the world’s gas exports, more than 20% of oil. [Russia] is the world’s third-largest exporter of coal," Novak concluded.

He added that Russia handles petrochemicals and hydrogen, develops traditional and new energy industries, and has unique expertise, technology and experience in the nuclear energy sector.

Hydrocarbons, coal to dominate for at least next few decades

According to Novak, hydrocarbons and coal currently account for about 82% in the world’s energy mix, and they will play a dominant role for at least the next few decades.

"As for hydrocarbons and coal, their proportion in the global energy mix is about 82%. And it will remain dominant whatsoever at least for decades to come," Russian deputy PM pointed out.

World changes view on green agenda, energy transition will be smoother

"We do see how the approach to the green agenda has changed. If its zealous supporters used to say before that coal-fired power plants and investment in oil and gas projects should be banned in the shortest possible time, but now this position has become more balanced," Novak said.

"In my opinion, the green agenda remains in place, but it will be smoother. We need to be aware that this story is not going to go anywhere. The proportion of renewable energy sources will be growing, as it was when coal began to be substituted with oil, and the latter with gas," he added.