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KMG managing director: State regulation of prices for oil products is wrong in terms of Customs Union

Oil&Gas Materials 30 July 2010 18:48 (UTC +04:00)

Azerbaijan, Baku, July 30 / Trend S. Suleymanov /

If we seek the common customs area and, especially, we are going to enter the WTO, I am not quite imagine how state regulation of prices for oil products can occur in such conditions. It is absurd, " KMG managing director of refining and marketing oil Daniyar Tiesov said.

He noted that state regulation of prices was used by the government only to avoid social outburst.

"But we do not expect sharp price on fuel yet. If the price increases, it will be smooth and gradual", he said.

He said that the stabilization of prices on the retail market can occur given two mandatory conditions. "First, if the supply will exceed demand. Secondly, if there is a transparent scheme of delivery of oil products from a producer to a consumer," he said.

"It will be good for the customs union to predict and make general stabilization of prices for oil products. The three governments should not stand aside and wait. They must work together on prices, so that consumers and producers to predict their actions ", he said.

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