German Gref said current prices of oil products on the domestic market had no economic justification.
The minister said oil companies were trying to emulate on domestic markets the high profits they receive on foreign markets, but that this should not be done.
"We do not regulate the market directly and do not aim to cause political tension," he said. "We should not be forced to use political measures and introduce direct regulation [of fuel prices]."
He also said the Economic Development and Trade Ministry, and the Industry and Energy Ministry would hold talks with oil companies to discuss curbing fuel prices.
According to the Federal State Statistics Service, the average gasoline price rose 0.4% during the week of January 30 to February 6 to 16.1 rubles ($0.57) per liter. Retail trade in gasoline declined 0.5%, with reserves decreasing 0.7%. Wholesale trade grew 2.4%, and gas reserves shrunk by 1%. The economic development ministry said that by February 10, the average gasoline retail price had grown 11% since the beginning of the year.
The minister said the government and parliament had decided not to index the excise rate for oil products in 2006, for the benefit of oil companies. In response, he said he expected oil companies to make only moderate increases to fuel prices.
He said the ministry and the Federal Anti-Monopoly Service were keeping an eye on the oil price situation and that a set of anti-inflation measures was being fully implemented.
