Russia is considering a diesel export ban for non-producers

Oil companies and Russian officials have discussed a possible ban on diesel exports for non-diesel-producing firms because of rising prices and the risk that oil companies will not receive their state subsidies, Russian news agency Interfax reported on Tuesday. citing anonymous sources.

Currently, Russia only bans gasoline exports until the end of the year.

Since October 1, winter diesel has been included in the wholesale price of diesel, which has pushed up prices and created the risk that oil refiners will not fully receive so-called buffer payments, a form of subsidy given to producers to encourage them to sell their products in Russia instead of exporting them at a higher price, according to one of Interfax’s sources.

Russian officials have said there are no problems with diesel supply in the country, as production is more than double current domestic demand.

Russia’s energy ministry and federal anti-monopoly service have estimated that prices remain stable and there is no fuel shortage in the country, the Russian government said today in a statement carried by Interfax.

Just two weeks ago, Russian Deputy Prime Minister Alexander Novak said that Russia could lift the ban on gasoline exports if there is a surplus of fuel on the domestic market.

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.

In the fall of 2023, Russia banned exports of diesel and gasoline in an effort to stabilize domestic fuel prices in the face of rising prices and shortages as crude rose and the Russian ruble weakened. Before implementing the ban, Russia increased mandatory supply volumes for gasoline and diesel to deal with a supply crunch.

By Tsvetana Paraskova for Oilprice.com

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