TNK-BP announces that effective from 6 June, 2012 the Company has implemented procedures for pricing and sales of gasoline on the Russian wholesale market, developed in cooperation with the Russian Federal Anti-monopoly service.
TNK-BP will determine prices for gasoline using a transparent and open methodology, based upon three underlying indicators: the non-exchange domestic fuel price index, the exchange index and also export parity. The procedures for automobile fuel price-setting will be identical for all business partners. Additionally, information on pricing procedures will be made public and available for all interested parties.
The document has been published on TNK-BP’s website and can be found at the following address:
All TNK-BP employees who are involved in wholesale gasoline sales in Russia will be obliged to act in accordance with the procedures.
The Company will use these principles to ensure that prices are set in a fair and transparent manner for all TNK-BP’s oil products, which is in the best interest of all market participants. The document sets out principles, channels and frameworks for gasoline sales, qualifications for counterparties, and also outlines procedures for setting prices and concluding contracts for oil product deliveries.
The Company’s gasoline sales will focus on meeting the demands for oil products on the Russian domestic market, providing equal opportunities and fair conditions for all business partners and also not any declining contracts with buyers without having justified economic and/or technical ground for doing so.
“TNK-BP’s pricing policy for the wholesale gasoline markets is based on simple, understandable and transparent principles: equal conditions for all partners, a clear mechanism for determining prices and a commitment not to arbitrarily set or change prices without justification based on objective economic factors. Our close cooperation and constructive dialog with the Anti-monopoly service was integral in developing our new approach to fuel pricing policy. I am confident that this is an important step in the right direction to develop an efficient and transparent oil products market in Russia, from which the key beneficiary will be the consumer,” said German Khan, Executive Director of TNK-BP.