By Alexander Miller, consultant in energy markets – Eurasia Business News, August 21, 2024. Article n°1181.

The Russian government decided to extend the ban on the export of gasoline “to maintain a stable situation in the fuel market.” The ban will be in effect from September 1 to December 31, 2024.

The ban on gasoline exports for a six-month period came into force in March, but in May-July it was suspended. The Russian Ministry of Energy proposed to extend the measure, the Cabinet of Ministers said that this was necessary to maintain a stable situation on the market

The restriction will not apply:

  • for deliveries within the framework of international intergovernmental agreements, including with the EAEU countries,
  • fuel exported by citizens for personal use,
  • fuel exported for the provision of international humanitarian assistance.

The government noted that the decision was made for the period of continuing seasonal demand and scheduled repairs at refineries. The previous restriction was in effect from March 1 to August 31, but was suspended from May 20 to the end of July due to “saturation of the domestic market with motor gasoline and to prevent a decrease in the volume of oil refining by individual enterprises.”

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This new extension reflects Russia’s strategy to prevent price spikes and ensure adequate fuel supply for domestic consumers, particularly in agriculture.

Read also : The world is heading towards an oil surplus by 2030

The refusal to completely lift the embargo, according to market participants, is due to the government’s desire to avoid sharp price hikes in the market, given the impossibility of eliminating the risk of a repetition of March drone attacks on Russian oil refineries.

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© Copyright 2024 – Eurasia Business News. Article No. 1181.