Deputy PM: Russia weighs new fuel export restrictions as wholesale prices climb

The Russian government is set to examine a proposal from the Federal Antimonopoly Service (FAS) to ban gasoline exports, including those by producers, as part of efforts to stabilize domestic fuel prices.

Deputy Prime Minister Alexander Novak confirmed the review, stating that the Energy Ministry would be involved in the assessment to ensure measures effectively protect the domestic market, Caliber.Az reports, citing Russian media.

Deputy Head of the FAS Vitaly Korolev attributed the recent surge in wholesale gasoline prices to a market correction following a period of decline. To prevent further price hikes, particularly ahead of the sowing season, the FAS is ready to discuss a temporary one-month export ban on gasoline for producers.

Market data from the St. Petersburg International Mercantile Exchange (SPIMEX) indicates that the wholesale prices of Ai-92 and Ai-95 gasoline climbed nearly 8% last week. The Russian government had previously extended a temporary gasoline export restriction until February 28, though it exempted supplies from producers refining over 1 million tons of oil in 2022 under intergovernmental agreements.

As a long-term solution, Korolev suggested forming a forward market for petroleum products, where consumers could purchase fuel in advance with set delivery dates. This, he argued, could help smooth out seasonal price fluctuations and mitigate supply pressures. Despite rising wholesale prices, the FAS noted that retail gasoline prices have remained stable, with increases not exceeding inflation levels.

Russia has implemented multiple restrictions on gasoline exports over the past year. A ban was in place from March 1 to August 31, 2024, though it was suspended from May 20 through the end of July. It was reinstated from September 1 to December 31, and in November, the government amended the restrictions to extend them into January 2025, with exemptions for major producers.

Now, with wholesale price pressures mounting, officials are considering more stringent measures, including a full ban on gasoline exports, to prevent further disruptions in the domestic fuel market.

By Tamilla Hasanova