Russia reinstates gasoline export ban amid looming fuel shortages
Russia reinstated the gasoline export ban, which had been suspended for the last two months. This signals that there is starting to be a shortage of fuel. According to Deputy Prime Minister Alexander Novak, the embargo will be in effect longer than initially planned.
According to information provided by Deputy Prime Minister Alexander Novak, Russia will reimpose the gasoline export ban starting August 1.
- We have an embargo adopted until September 1, which is now suspended. From August 1, this suspension ends, and the gasoline export ban will automatically be reinstated. So, starting August 1, the ban will be in effect again - explained Novak during a meeting with journalists in Moscow.
The Deputy Prime Minister added that the Russian government is considering extending the embargo into September. This is surprising news, given that gasoline demand typically decreases after the end of the vacation season. Novak assured that the Russian fuel market is stable but admitted that it is sensitive to the supply of the appropriate quantity of 95-octane gasoline.
The Russian government's decisions regarding the gasoline export ban are based on an analysis of demand and supply in the domestic market, added the Deputy Prime Minister of Russia. This signals that Russia is starting to have a fuel shortage.
Fuel shortages could not be avoided
Russia limited gasoline exports to foreign markets starting March 1 for six months. This was intended to help avoid domestic fuel shortages and price spikes. It was only partially successful.
During this time, Ukrainian drone attacks on Russian refinery infrastructure significantly reduced processing capabilities, and partial shutdowns of some facilities were necessary. In February, just before the ban was implemented, Russia sold about 22,000 cubic metres of gasoline abroad daily, nearly 14% of total production.
