Oil Price Caps Come To An End

The Economic Ministry abolished all limits on wholesale and retail prices for oil products. On April 15, the ministry capped prices at ~13% for oil products sold on the local market in an effort to contain price growth caused by a supply deficit. Recently, President Viktor Yushchenko criticized the government’s regulative measures as contradictory to market economy principles. In his decree from May 18, the President obliged the Economic Ministry to cancel oil price caps within two weeks.