Russia Could Ban Diesel Exports Again

Russia is considering banning the export of diesel if prices rise further, Russian daily Kommersant reported on Wednesday, citing several sources.

The Russian government could ban diesel exports if prices spike in the near term, but no decision has been made yet, according to Kommersant’s sources.   

There are no conditions for a complete ban on diesel shipments abroad yet, a source at a local oil company told the Russian daily.

The government is restoring a ban on gasoline exports from August 1.

In the autumn of 2023, Russia banned exports of diesel and gasoline in an effort to stabilize domestic fuel prices in the face of soaring prices and shortages as crude oil rallied and the Russian ruble weakened. Prior to implementing the ban, Russia had raised mandatory supply volumes for motor gasoline and diesel fuel to deal with a supply crunch.

These bans lasted only a few weeks.

This year, Russia reinstated a ban on gasoline shipments from March 1 but lifted the restriction on May 20 as more refineries completed planned seasonal maintenance or emergency repairs after Ukrainian drone hits in the winter and early spring.

At the end of March, Russian Deputy Prime Minister Alexander Novak said the government doesn’t plan to ban diesel exports again.

At the time the supply and prices of diesel were stable.

However, diesel demand and prices have increased in recent weeks, and, according to Kommersant’s sources, the government could reinstate a ban on exports if prices continue to rise.

In terms of gasoline exports, a ban will be renewed on August 1, Novak said earlier this week.

“We have the embargo approved until September 1. An exception has been currently made for the month of July. The exception ends from August 1. The tacit ban on exports of petroleum products and gasoline will be restored. In other words, the ban will be reenacted from August 1,” Russian news agency TASS quoted Novak as saying.

By Tsvetana Paraskova for Oilprice.com

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