Belarusian diesel returns to SPIMEX, draws interest as temperatures fall in Russia

MOSCOW. Nov 30 (Interfax) - Oil products from Belarusian refineries are again trading on the St. Petersburg International Mercantile Exchange (SPIMEX) after an almost three-month absence.

Belarusian refineries began selling winter and Arctic fuel on the Russian exchange in late November. Demand for such fuel is growing as the weather in Russia gets colder.

Fuel market sources told Interfax that prices for Belarusian fuel are attractive, particularly amid the rising prices for winter diesel fuel on SPIMEX. They also said they believe Belarusian refineries have returned to the exchange because Russia reinstated the parameters of the fuel damper subsidy.

At the height of the fuel price crisis in Russia in late summer, Belarusian refineries stopped selling their fuel on SPIMEX because the Russian government slashed the damper by half in September, making it unattractive for Belarusian producers to supply fuel to the Russian market. However, in October Russia reinstated the damper to its previous parameters, making the market attractive again for Belarusian refineries.

Belarusian oil products are sold on SPIMEX through trader Promsyryeimport and the damper payments are also made through this company.

Active trading of Belarusian oil products on SPIMEX began in October 2022, prior to which Belarusian fuel did not have a presence on the Russian market for several consecutive years. Sales of Belarusian fuel, although relatively small for the whole Russian market, can have an impact on exchange prices for gasoline and diesel.