Russia lifts ban on summer diesel exports given saturation of domestic market

MOSCOW. Nov 23 (Interfax) - The Russian government has decided to lift the temporary ban on exports of summer diesel fuel that was imposed on September 21 as part of a set of measures to stabilize prices on the domestic motor fuel market, the Energy Ministry reported.

"In the past two months, with the continuation of high amounts of oil processing at oil refineries, the domestic market has been saturated with commercial diesel fuel of all types and automobile gasoline, including in the exchange sales channel. As a result, since the export ban went into effect wholesale prices for summer diesel fuel on the exchange have fallen and its inventories total over 3.2 million tonnes, 14% more than on the day the ban on motor fuel exports was introduced," the ministry said.

The winter usually sees the completion of the cycle of refinery modernization and a decline in demand for summer diesel given the low temperatures in much of Russia, the ministry said.

"In order to prevent a decline in capacity utilization at oil refineries and ensure high levels of production of needed fuels - commercial automobile gasoline and winter grades of diesel fuel, as well as taking into account the stabilization of the price situation on the domestic market, a decision has been made to end the temporary ban on exports of summer diesel fuel," the ministry said.

Monitoring of production and prices will continue with a view to possibly taking prompt steps to ensure that the domestic market is supplied with fuel, the ministry said.