Russia will reportedly ban gasoline exports for 6 months to offset 'excessive' demand for crude products

• Russia will ban gasoline exports for six months starting March 1, Reuters reported.

• The proposed ban aims to curb the rising demand and keep domestic prices level.

• Gasoline exports were down 27% on the year in mid-February, according to S&P Global.

Russia is set to ban gasoline exports for six months to stabilize prices and counter escalating demand for crude products.

The restriction, effective on March 1, was confirmed by Alexander Novak, the spokesperson appointed by Russian President Putin for Deputy Prime Minister and the key figure overseeing Russia's extensive energy sector, Reuters reported Tuesday, citing Russia's RBC.

The report added that Russia's Prime Minister Mikhail Mishustin greenlighted the ban proposed by Novak in a letter dated on February 21, but the official decree was pending.

The ban aims to address surging domestic demand for petroleum products, while safeguarding prices and helping refiners in Russia's domestic market, according to Novak.

With a presidential election coming up in March,  Russia's local fuel prices have become an important issue for drivers and farmers. Meanwhile, Russian refineries have grappled with disruptions from Ukrainian drone attacks in recent months.

Since Russia invaded Ukraine in February 2022, the world's second-largest oil exporter has seen many of its tankers sanctioned by the West, and S&P Global reported that gasoline exports were down 27% on the year in mid-February.

 

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