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State petroleum reserves regulated

The State would sell petroleum in the state reserves to stabilize the market. It is a noteworthy point in a regulation on the management of state reserves petroleum, drafted by the Ministry of Finance (MoF).

Under the 24-article draft decree, upon occurrence of marked fluctuations on the petroleum market, the MoF would, in association with other relevant authorities, propose to the Prime Minister a plan on sale or purchase of petroleum. The decision on the sale and purchase of petroleum would be made on the principle of selling at most 50% of the volume of petroleum in the state reserves when the market price goes up and re-purchasing the sold volume when the market price falls down. The difference between the proceeds from sale of petroleum and the money amount used for re-purchase would be remitted into the national cash reserves fund.

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