Russia reinstates petrol export ban amid fuel shortage concerns
Russia reinstated the petrol export ban, which had been suspended for the last two months. This signals an emerging fuel shortage. 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 petrol export ban on 1 August.
- We have an embargo adopted until 1 September, which is now suspended. From 1 August, this suspension ends, and the petrol export ban will automatically be reinstated. So, starting 1 August, 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 demand for petrol typically decreases after the end of the holiday season. Novak assured us that the Russian fuel market would be stable. However, he admitted that the Russian market is sensitive to the supply of the appropriate quantity of 95-octane petrol.
The Russian government's decisions regarding the petrol 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 petrol exports to foreign markets starting 1 March and lasting six months. This was intended to help avoid domestic fuel shortages and price spikes, but 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 22.4 million litres of petrol abroad daily, nearly 14% of total production.
