Russia will lift domestic price controls on crude oil and refined products Apr. 15, according to Tass news agency, quoting unnamed officials.
Tass said the federation's government also may consider a 50% tax on crude oil and products.
The news agency said crude oil prices in Russia will increase to 2,0002,500 rubles/metric ton, excluding tax, from 350 rubles/ton at the first of the year. At current exchange rates, that works out to only about $3.65-4.57/bbl, a fraction of world market prices.
The measures are designed to pave the way for Russia's full membership into the International Monetary Fund, thus making the former Soviet republic eligible for badly needed international loans and investment credits. The former Soviet Union last October was granted IMF associate status, giving it access to technical expertise but not loans.
IMF had recommended Russia raise oil prices by as much as 1,500%. That would bring an oil price equivalent to about $10.22/bbl.
Tass projected crude prices would climb 500-700% compared with an average jump of 300% in the cost of most other goods and services since early January, when the government of President Boris Yeltsin ordered the first lifting of price controls in a move toward a free market economy.
Associated Press quoted Russian government economic adviser Konstantin Kagalovsky as saying the higher prices could cause Russian energy consumption to drop by 10-15%. He also said price controls would remain on natural gas and electricity.
Gasoline prices have risen about 300% since early January to 1.2 rubles/l. Gasoline will continue to be subsidized, according to Tass.
Kagalovsky said domestic prices will rise to a level comparable to export prices by yearend 1993.
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