Russia to Pump More Oil, Cut Export Duty

FUEL FEARS

Putin's surprise initiative on fuel oil reflected strong criticism of refiners in the wake of the fuel crisis, during which some refiners were shown to be ill-equipped to refine enough gasoline to supply the country's growing number of cars.

With a presidential election due in March next year and parliamentary elections in December, the government wants to ensure smooth supplies of refined fuels and low prices.

"Producers should have the responsibility to supply the domestic market (with oil products) in a proportional amount to the crude they pump," Putin told the meeting.

He also said failure to do so could result in restricted access to export pipeline capacity.

"If we see (oil companies) leaning toward increased oil exports at the expense of refining, we will discuss export schedules," Putin said, addressing pipeline monopoly officials: "Transneft, take note of this."