Russia imposes ban on gasoline exports
(MENAFN) Russia has announced a complete ban on gasoline exports, expanding the restriction to include all petroleum product manufacturers. The government revealed on Tuesday that the embargo will begin on July 29 and remain in effect until the end of August, with a possibility of extension into September. This measure follows an earlier partial ban imposed earlier this year, which targeted non-producers such as traders, oil depots, and small refineries, while exempting major refineries producing over one million tons annually. Facing rising wholesale gasoline prices, Moscow has now decided to enforce a full embargo.
Since late June, gasoline prices at the pump in Russia have increased. Even as the country recorded its first deflation this year at 0.05% last week, gasoline prices still rose by 0.3% between July 15 and 21. The official announcement stated that the ban is intended “to secure a stable situation on the domestic fuel market during the season of high demand and agricultural field work.” Under this new regulation, oil companies are required to redirect more fuel to the domestic market, which is expected to increase supply on stock exchanges.
Wholesale gasoline prices in the European part of Russia have also surged since early summer, according to reports from the St. Petersburg Mercantile Exchange. AI-92 gasoline prices have risen by 14.8%, while AI-95 gasoline has increased by 23%, with year-on-year growth rates of 27.2% and 40.8%, respectively. Experts attribute the price surge to logistical bottlenecks, seasonal refinery maintenance, and the excise duty adjustments on gasoline and diesel implemented on January 1.
The Energy Ministry stated last week that seasonal summer demand has been factored into the pricing policy and described the domestic fuel market as stable. However, experts point out that the embargo does not affect previously agreed export volumes under intergovernmental agreements, including those with the Eurasian Economic Union bloc of post-Soviet countries, as well as with Mongolia, Uzbekistan, Abkhazia, and South Ossetia.
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