Russia reinstates gasoline export ban on Aug 1, order to extend it for Sept-Oct expected soon
MOSCOW. Aug 1 (Interfax) - Russia reinstated its ban on gasoline exports from August 1 until the end of the month.
The Energy Ministry has said a fundamental decision has been made to limit the exports in September and October, with the relevant order expected soon.
The government imposed the temporary ban on gasoline exports on March 1 for a period of six months, to August 31. The ban did not apply to shipments under international intergovernmental agreements, including with members of the Eurasian Economic Union, fuel taken out of Russia by individuals for personal use or fuel exported to provide international humanitarian aid.
The government on May 20 allowed gasoline exports by fuel producers in June and then in July, while keeping the ban on exports by non-producers in place. The decision reflected the saturation of the domestic automobile gasoline market, which posed the risk of a decline in refining volumes by some oil refineries due to overstocking of automobile gasoline, as well as the need to free up ports from fuel that was planned for export but not shipped out due to the restrictions.
But gasoline prices have been rising virtually non-stop on the exchange since the beginning of June as the holiday season got into full swing. The price of AI-92 (RON 92) gasoline rose 17% and AI 95 soared 38% by the beginning of July. The spread between AI-95 and AI-92 on the exchange approached 18,000 rubles at times, which is not normal for the gasoline segment. Demand for AI-95 gasoline will continue to increase in July-August as the holiday period in Russia peaks.
Against this backdrop, regulators began talking about the need to reinstate the ban on gasoline exports, and for a longer period, until the end of October, so that the fuel market could get through both peak demand for oil products in August and scheduled maintenance at oil refineries in the autumn without too much difficulty.
The practice of banning fuel exports has proven its worth and thanks to this the domestic market can be saturated quickly.
Russia banned petroleum product exports for the first time ever in the autumn of 2023. A fuel price crisis had arisen in the summer, when demand peaks, and it escalated towards the end of summer, when farmers complained about the rapidly rising cost of diesel fuel and a shortage of fuel and lubricants in a number of regions. Officials and oil companies could not find a solution and the government banned fuel exports on September 21. The restrictions were lifted gradually - the ban on gasoline exports on November 17 and the ban on summer diesel exports on November 22.