Russian Energy Ministry says steady fuel surplus has emerged in domestic market

MOSCOW. March 13 (Interfax) - The situation with fuel supply to the regions and prices at filling stations is stable with the Russian Energy Ministry and Federal Anti-monopoly Service monitoring this on a daily basis, the ministry said.

"Measures are being taken to ensure the necessary utilization of oil refining capacity while coordinating the actions of oil companies and Russian Railways. A steady supply surplus has emerged in the domestic market as a result of preventive measures taken by the Russian government to ban exports of gasoline and impose prohibitive duties for resellers," it said.

Diesel production is twice as much as the market needs, but in order to saturate it further and rein in growth for wholesale prices, a decision was made to increase mandatory sales of diesel on the stock exchange instead of banning exports, the ministry said.

"Since the beginning of 2024, average daily supply of gasoline to the domestic market is up 6% on the same period last year, and diesel fuel is 8% higher. Gasoline inventories at refineries and tank farms are 2 million tonnes and diesel stocks are 3.5 million tonnes, indicating a high degree of readiness for the season of growing demand," the ministry said.

"In the retail segment, prices are stable and have not increased since the beginning of the year. Today's level of wholesale prices on the exchange creates a comfortable level of profitability for stable prices at gas stations, regardless of short-term fluctuations in the wholesale market," it said.

The Federal Anti-monopoly Service said following a meeting of its Exchange Committee that oil companies had committed to increasing supplementary fuel supplies to the exchange.

It said that prices were stable in the retail segment and wholesale (exchange) prices enabled filling gas stations to break even and prevent price rises at filling stations themselves.

In addition, the Exchange Committee discussed petroleum product transportation on pipeline bases. "Pipeline infrastructure is now working round the clock. Proposals to reduce shipments to 25 days and increase quotas for the sale of fuel to the pipeline infrastructure through Transneft Goods Supply Operator were discussed. Also, the FAS will hold a meeting on March 19 on improving fuel pipeline transportation infrastructure. In addition, the issue of shipping fuel by tankers will be discussed, taking into account the opening of river navigation," the FAS said.