Russia Orders Oil Companies To Freeze Gasoline Prices -Report

Russia's government has reached an informal agreement with the country's oil companies to freeze gasoline prices until the spring, the Kommersant daily reported Monday, citing Energy Minister Sergey Shmatko.

The government has "agreed in principle" with oil companies, other market participants and regional authorities to hold wholesale and retail gasoline prices at the December 2011 level, despite a rise in excise taxes this month, Shmatko said in the report.

The paper cites unidentified representatives at oil companies as saying Deputy Prime Minister Igor Sechin has given a "direct order" to freeze wholesale and retail prices until after the presidential election on March 4.

The measure comes after filling stations halted operations across the country last year due to shortages, as artificially low domestic prices had prompted producers to ship more oil products to export markets.

Newspaper website: www.kommersant.ru

-By Moscow Bureau, Dow Jones Newswires; [phone]