Russia prohibits all gasoline ship-outs
(MENAFN) Russia has announced a full ban on gasoline exports, extending the restriction to all petroleum product producers. The embargo starts on July 29 and will last through August, with a possibility of being extended into September.
This new ban follows an earlier partial restriction that targeted non-producers such as traders, small refineries, and oil depots, while allowing major refineries producing over 1 million tons annually to continue exports. Due to rising wholesale gasoline prices, Moscow has now decided to impose a comprehensive embargo. Reports indicated that this move had been under consideration since late June.
Despite Russia experiencing its first deflation of the year at 0.05%, gasoline prices have risen by 0.3% between July 15 and 21. The government stated that the ban is intended to maintain stability in the domestic fuel market during the high-demand summer season and the ongoing agricultural fieldwork period. Consequently, oil companies must allocate more fuel for local consumption, increasing supply on the domestic exchange.
Wholesale gasoline prices in the European part of Russia have also surged since early summer, with AI-92 gasoline rising 14.8% and AI-95 increasing by 23%. Year-on-year, prices climbed 27.2% and 40.8%, respectively. Experts attribute these hikes to logistical issues, refinery maintenance, and the excise tax adjustments implemented on January 1.
The Energy Ministry emphasized that seasonal demand is accounted for in pricing policies and described the fuel market as stable. The embargo does not affect previously agreed export volumes under intergovernmental agreements with the Eurasian Economic Union and countries like Mongolia, Uzbekistan, Abkhazia, and South Ossetia.
Analysts view the ban as a predictable administrative measure commonly used in the Russian fuel market to control retail price spikes and typically lifted once prices stabilize.
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