By Tsvetana Paraskova for Oilprice.com | Russian oil companies and officials have discussed the possible ban on diesel exports for firms not producing diesel due to rising prices and the risk of oil companies not getting their state subsidies, Russia’s Interfax news agency reported on Tuesday, quoting unnamed sources.
Currently, Russia has a ban on gasoline exports only, until the end of the year.
As of October 1, winter diesel fuel is included in the wholesale diesel price, which has raised prices and created a risk that oil refiners may not receive their so-called damper payments in full. According to one of Interfax’s sources, damper payments are a form of subsidy to producers to encourage them to sell their products in Russia instead of exporting them for a higher price.
Russia’s energy ministry and the federal anti-monopoly service have estimated that prices remain stable and that there is no shortage of fuels 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 its ban on gasoline exports if a fuel surplus emerges on the domestic market.
In mid-August, the Russian government announced that Moscow is extending its ban on gasoline exports from October to the end of December 2024. This move seeks to keep domestic supply stable amid seasonal demand and scheduled repairs at refineries.
In the autumn of 2023, Russia banned exports of diesel and gasoline in an effort to stabilize domestic fuel prices. As crude oil rallied and the Russian ruble weakened, fuel prices soared, and shortages occurred. Before implementing the ban, Russia had raised mandatory supply volumes for motor gasoline and diesel fuel to deal with a supply crunch.
By Tsvetana Paraskova for Oilprice.com
