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Moscow to double oil, coal prices
MOSCOW. Sept 18 President Boris, Yeltsin will sign a decree doubling oil prices in the next few days in the latest stage of the govern merit's radical economic reform programme, a senior economic adviser said, reports Reuter.
Alexei Ulyukayev told a news briefing that the decree' would be released "today-to-morrow." a Russian expression meaning "in the very near future."
He said the rise, which had been announced earlier, would mean an approximate doubling of oil prices, now around 1.800 rouble per tonne. Coal
prices will rise about 30 per
The move Is intended to reverse a steady fall In production and. to boost sagging export revenues.
Ulyukayev denied the planned rise would translate into 200 per cent across-the-board inflation, saying the move was likely to trigger . "weak" inflation of only about 20-25 per cent.
But.the latest price rises will further tighten the screw on hard-pressed Russians, already struggling to survive soaring inflation which followed the freeing of most prices tn January.
Acting Russian central bank he^d Viktor Gerashchenko added to the gloom. saying government spending In October may have to be cut by up to 60 per cent because of an impending budget crisis
Gerashchenko told Itar-Tass news agency that the government had only received 40 per cent of the income it had budgeted for in the first eight months of the year.
"It is possible that we will be forced to simply slop spending as budgeted and limit ourselves to the money we have received," he said. The budget deficit this year is already estimated to hit 950
billion rouble.
But Ulyukayev offered a ray of hope when he said fuel stocks were higher than last September, helping to allay fears that shortages could leave households short of heat and light during the bitter winter months.
Russia, under pressure from the West to lift controls on energy prices as soon as possible, aims to gradually bring them into line with world level by late 1993.
Earlier this year Yeltsin beat off Western attempts to persuade him to free energy prices earlier, saying Russians could not bear the strain.