Russia could drop its gasoline export ban if a domestic surplus emerges

Russia may lift the ban on gasoline exports if a surplus of fuel appears on the domestic market, Russian Deputy Prime Minister Alexander Novak said Thursday on the sidelines of an energy forum in Russia.

In mid-August, the Russian government said Moscow was extending its ban on gasoline exports from October until the end of December 2024, trying to keep domestic supply stable amid seasonal demand and scheduled refinery repairs.

The government’s key priority now is to meet domestic demand for gasoline, Novak said today on the sidelines of the Russian Energy Week forum, reported by the local Interfax news agency.

“Exports are always allowed if there is a surplus of product in the domestic market. For example, we do not have a ban on exporting diesel, because there is a surplus and it is sold both on the domestic market and on export,” said Novak.

Exports are now banned for gasoline as Russia aims to ensure the security of gasoline supplies in the domestic market, the Russian oil official added.

Currently, the government is not worried about the domestic supply situation because there are enough oil products on the stock market and stable prices at gas stations, Novak said.

In recent months, Russia has seen higher-than-expected maintenance and repair work at its refineries after Ukraine stepped up its drone attacks earlier this year on Russian refining capacity. In addition to unplanned repairs to repair damage caused by drones, some refineries underwent planned maintenance work. This led to a drop in Russia’s fuel production and exports earlier this year.

However, Russian exports of petroleum products rose 10 percent in the first half of September compared with August as shipments of diesel and fuel oil recovered from last month’s lows, data showed last week analysis firm Vortexa, compiled by Bloomberg.

By Tsvetana Paraskova for Oilprice.com

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