Russia is considering extending its gasoline export ban and introducing new restrictions on diesel exports through the end of 2025 as Ukrainian drone strikes continue to disrupt the country’s oil refining capacity.
Moscow is weighing whether to extend its current gasoline export restrictions and implement new diesel limitations through 2025’s end, industry sources told the Russian news agency TASS on Tuesday.
Domestic fuel costs have surged as Ukrainian attacks intensify against Russian energy infrastructure. Retail gasoline prices have climbed more than 7% since January, outpacing inflation by one and a half times, while wholesale increases have been even steeper.
Sponsored · Altamira Gold Corp.
Since early August, Ukrainian forces have struck 16 of Russia’s 38 refineries, some multiple times, disrupting more than 1 million barrels per day of refining capacity, according to cargo-tracking data. The attacks have forced temporary shutdowns at several facilities for repairs.
Russia currently maintains a temporary gasoline export ban for producers through September 30 and for non-producing traders through October 31. The restrictions, first introduced in March, exclude supplies to members of the Moscow-led Eurasian Economic Union and humanitarian aid.
The Russian Energy Ministry has also imposed tighter trading rules for diesel fuel on the St. Petersburg Exchange, including price increase limits and caps on purchase orders for gasoline.
Ukrainian forces have focused attacks this year on both Russia’s refining capacity and export infrastructure, aiming to disrupt domestic fuel supplies while reducing revenues that finance Moscow’s war effort. Recent strikes hit Russia’s largest oil offloading terminal at Primorsk and pumping stations along the Transneft Baltic Pipeline System.
Related: Ukraine Strikes Cut Russian Oil Refining Capacity by 17%, Fuel Prices Soar
Energy export revenues typically provide a major portion of Russia’s federal budget, making the sector critical to government financing.
Despite the production disruptions, Russia currently maintains sufficient diesel supplies, with production exceeding domestic demand by more than 50%, according to industry sources. However, diesel exports in September are on track to hit their lowest monthly level since 2020 if current trends continue.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
