Prices have dropped and inventories have risen. The government lifted the temporary ban on the export of gasoline from Russia

Russian Government On November 17, the temporary ban on gasoline exports, which had been in effect since September 21, was lifted. About it reported at the country’s Ministry of Energy. Among the reasons cited are a surplus of fuel on the Russian market and a significant reduction in wholesale prices.

The Government of the Russian Federation has made a decision to lift, from November 17, the temporary ban on the export of motor gasoline, introduced on September 21 as part of a set of measures to stabilize the price situation on the domestic motor fuel market

Press service of the Ministry of Energy

The department explained that the decision to terminate the temporary ban on fuel exports was made taking into account the stabilization of the price situation on the Russian market, as well as in order to prevent unloading of oil refineries and ensure high levels of gasoline production.

The Ministry of Energy explained the reasons for lifting the ban

In the press service of the Ministry of Energy explained reasons for lifting the ban on fuel exports. They noted that since September 21, wholesale prices for gasoline have decreased significantly, and inventories, on the contrary, have increased, now they amount to about two million tons.

In addition, during the winter period, repair cycles at oil refineries (ORs) are completed and the demand for gasoline decreases, the department added.

Over the past two months, while maintaining high volumes of oil refining at the refinery, saturation of the domestic market has been ensured and a surplus in the supply of motor gasoline has been created, including in the exchange sales channel

Press service of the Ministry of Energy

The Ministry of Energy clarified that the export embargo could be returned, but at present the government is only monitoring production and price indicators.

November 16 reportedthat the cost of AI-92 gasoline is St. Petersburg International Commodity and Raw Materials Exchange (SPbMTSB) on Thursday, November 16, decreased by 4.03 percent, to 49,287 rubles per ton.

The decline followed several days of significant growth that began last week. The reason for it was media reports about the authorities’ readiness cancel restrictions on the export of petroleum products.

Head of the Ministry of Energy Nikolay Shulginov Also mentioned discussion of lifting the ban on the export of AI-95 and AI-92, but did not give a time frame. Such a sharp drop in prices may be due to the fact that market participants are no longer waiting for the restrictions to be revised.

Why was the ban on gasoline exports introduced?

In mid-August, a number of Russian regions announced a shortage of gasoline and diesel for agricultural producers. The cost of fuel on the stock exchange began to set new records every day, and retail prices began to rise after wholesale prices. Against this background, since September 21, the Russian government introduced temporary restrictions on the export of gasoline and diesel fuel to stabilize the domestic market.

It was noted that temporary restrictions will help saturate the fuel market, which in turn will reduce prices for consumers. In turn, the Ministry of Energy clarified that the decision will make it possible to effectively stop gray exports (export abroad of fuel purchased for the domestic market).

Speaker State Duma Vyacheslav Volodin The main reason for the ban was the shortage of fuel for agriculture, which threatened to disrupt the harvesting campaign and sowing work.

After the introduction of restrictions, exchange prices for relevant products started decline. Before that, they reached record levels. Among the reasons for the current situation, the Ministry of Energy indicated the devaluation of the ruble, which affected export goods, including oil and petroleum products, as well as a global shortage of diesel, especially in Europe.

At the beginning of October, a ban on diesel fuel softenedallowing its delivery to seaports by pipeline, but only on the condition that at least half of the total output goes to the domestic market.

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