Russia relaxes ban on fuel exports

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The Russian government has relaxed limits on diesel exports, but a prohibition on petrol exports remains in effect, according to the Council of Ministers’ press service on Friday.

The measures were implemented last month in order to stabilise domestic gasoline supply.

Diesel shipments can recommence under two conditions: the fuel must be delivered by pipeline to the ports, and the company must supply at least 50% of the diesel it generates to the domestic market.

The statement on Friday comes less than three weeks after Russia imposed a near-total ban on both diesel and petrol exports in response to a surge in domestic wholesale fuel prices caused by fuel shortages. The limits produced a spike in global oil prices.

However, the prohibition aided in containing the rise in domestic fuel prices in Russia. According to Reuters, wholesale diesel prices on the local exchange have fallen by 21% since the ban was implemented, while petrol prices have fallen by 10%.

To maintain domestic gasoline supply stability, Moscow raised the fuel export duty for resellers who do not generate the fuel from 20,000 rubles ($198.6) to 50,000 rubles ($495.6) per tonne on Friday.

“The government is discouraging resellers from purchasing fuel in advance for subsequent export once current restrictions are lifted.” This also stops companies from exporting “fuel disguised as other products,” according to the Council of Ministers’ statement.