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Optimization of State and Municipal Purchases of Petroleum Products in the Contract System

Student: Iuliia Rodionova

Supervisor: Natalia Maslova

Faculty: Faculty of Social Sciences

Educational Programme: Public Administration (Master)

Year of Graduation: 2017

In this paper to test the hypothesis on the inefficiency of the mechanisms used in public procurement of petroleum produce, we have developed criteria for assessing the efficiency of purchases and have evaluated this effectiveness based on data of 595 protocols for procurement procedures on State and commercial petroleum products’ purchases from 01.12.2016 to 31.12.2016 in Moscow. In order to perform this assessment, the methods used to determine the supplier have been examined, furthermore, the competitive environment in the procurement process has been evaluated as well as the percentage of cost savings has been revealed by State and commercial customers during competitive procedures. As a result of the conducted research, it is concluded that both State and commercial purchases of petrol and diesel fuel in Moscow are characterized by a low-level competition and an insufficient level of cost savings. Taking into account the characteristics of petroleum products such as price instability, high importance, risks of suppliers and customers, it is proposed to legislatively enshrine the application on the method of comparable market prices by using extended sources of price information, to establish a uniform list of documentary forms included in the application as well as to amend its legislation regarding the possibility of changing the price of fuel with the subsequent requirement for the inclusion of the clause into the contract.

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