Search
Close this search box.
Russia Mulls Ban on Oil Product Exports to Stabilize Prices
Russian oil and gas budget revenues more than doubled in October
Russian oil and gas budget revenues more than doubled in October
– By Daniel Terungwa

       Share 

Facebook
Twitter
LinkedIn
WhatsApp

Russia Mulls Ban on Oil Product Exports to Stabilize Prices

Russia is again reviving the possibility that it could ban all crude oil product exports in order to stabilize volatile fuel prices in the country, according to Russia’s TASS new agency said on Friday.

Alternatively, Russia could increase its oil product exports duty to $250 per tonne. This duty will be refunded for those companies that meet their quota for supplying fuel to Russia’s domestic market.

A ban on product exports out of Russia—although temporary—would squeeze Europe’s diesel supplies even more. While Europe has banned the importation of Russian-sourced refined products as of February, it merely shifted trade patterns, with Russia increasing its refined products exports by 50% year over year as of the first quarter by increasing shipments to Africa.

The news comes even as Gazprom’s Astrakhan gas processing plant resumed gasoline output after maintenance work.

Russian Energy Minister Nikolai Shulginov said earlier this week that there were a number of oil refineries that were due to be brought back online after maintenance work—Astrakhan being just one. The end of maintenance work on the refineries could go a long way in easing Russia’s domestic fuel crunch, and could negate the need for a ban on the country’s exports.

Russian Energy Minister Nikolai Shulginov
Russian Energy Minister Nikolai Shulginov

Russia has been considering a fuel export ban since May in an effort to avert domestic fuel shortages and rein in prices after announcing a halving of subsidies to oil refiners that will start this month in order to keep more money in government coffers to fund its military operation in Ukraine.

Related Posts

Despite the domestic fuel crunch, Russia’s oil refineries increased crude processing rates in the first half of last month in the runup to the subsidy cuts.

Russia also said it planned to reduce diesel exports from western ports by a quarter this month as seasonal refinery maintenance continued.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Newsletter

Get to read our latest stories right in your email

Show some Love. Share this post

Copyright 2022. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from Majorwaves Energy Report

Show Buttons
Hide Buttons