Russia might allow gasoline exports by producers until end of Feb - paper
MOSCOW. Jan 29 (Interfax) - The Russian government might in the next few days extend permission for oil refiners to export gasoline for another month, until February 28, national daily Kommersant reported, citing sources familiar with the situation.
The Energy Ministry is supposed to present proposals to the government by mid-February for maintaining gasoline exports in light of new sanctions.
The paper reported oil market sources as saying that the extension of oil product exports will enable the government to partially offset oil companies' losses from the latest U.S. sanctions imposed on January 10. These sanctions against Russia's oil industry included the blacklisting of more than 180 tankers that primarily ship Russian crude. As a result, dozens of vessels had problems unloading their cargo and charter rates spiked. Therefore, Russia will refine as much crude as possible inside the country and export oil products, which are not subject to such strict restrictions, the sources said.
In the week from January 20 to 26, charter rates for shipping oil from Kozmino, from which it primarily goes to China and India, rose 14% compared to the previous week to $8.10 per barrel, Kommersant reported, citing analysts. Rates from Baltic and Black Sea ports fell 4%-7%, but remain high. With discounts on Russian crude increasing, including to $10 per barrel for ESPO FOB Kozmino Port and to $16.25 for Urals FOB Primorsk, shipments to the domestic market are expected to increase.
However, gasoline prices in Russia have starting rising rapidly, climbing 6%-7% by the national index (includes all refineries in Russia) on the St. Petersburg International Mercantile Exchange (SPIMEX) in the last four trading sessions. Prices fell in the first trading days of January. Interfax sources on the fuel market attribute the rising prices to the risk of unscheduled repairs at oil refineries. Industry experts expect gasoline prices to keep climbing on the SPIMEX in the near term.
Russia banned gasoline exports twice in 2024, first for six months from March 1 to August 31 because of rising exchange prices in January amid unscheduled refinery repairs. But in mid-May it temporarily lifted the ban until June 30 to prevent overstocking at refineries. In the summer, when fuel demand peaked, the export restrictions were reinstated from August 1, and then extended to the end of the year.
At the end of November, companies that produce gasoline were granted permission to export it, but the ban remained in place for others until the end of January 2025.
Russia first banned gasoline exports in the fall of 2023 amid a price crisis on the fuel market.
