To stabilize prices
Kremlin bans export of gasoline and diesel
February 27, 2024, 11:51 a.m
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Demand for gasoline and diesel in Russia is expected to increase. At the same time, maintenance work is being carried out in some Russian refineries. The government wants to stabilize fuel prices with an export ban.
According to media reports, the Russian government has largely banned the export of gasoline and diesel for six months. The export ban signed by Cabinet Chief Mikhail Mishustin will come into force on Friday to compensate for the expected higher demand in the country, the Internet portal RBC reported, citing government circles.
At the same time, oil companies will in future sell at least 16 percent of their diesel production on the Russian stock exchange. The initiative comes from the deputy head of government responsible for energy, Alexander Nowak. Fuel requirements increase in the spring due to field work and in the summer due to the holiday season. At the same time, several refineries were undergoing scheduled repair work.
The export ban therefore allows prices on the domestic market to be stabilized, says Nowak in a letter. Exports to the countries of the Russian-dominated economic union Armenia, Belarus, Kazakhstan and Kyrgyzstan as well as Mongolia and Uzbekistan are not affected by the ban. According to RBC, prices on the Russian commodity exchanges for various types of gasoline and diesel have risen between 8 and 23 percent since the beginning of the year.
The price increase has not yet reached the petrol stations. Russia is a significant player on world markets, particularly in diesel production. The EU banned the import of oil products from Russia last year. But at the same time, countries like Turkey and Brazil have bought significantly more diesel.