MOSCOW, September 21 A ban on fuel exports will have a quick effect on wholesale prices, supplies from bona fide participants will create a surplus in the domestic market of the Russian Federation, said First Deputy Minister of Energy Pavel Sorokin in a video published on the Telegram channel of the Ministry of Energy.
Earlier on Thursday, the Russian government introduced a temporary ban on the export of gasoline and diesel fuel to stabilize the domestic market. The Ministry of Energy noted that the imposed restrictions will help stop the “gray” export of motor fuels and saturate the domestic market.
“This measure should have an effect very quickly, because leaching will stop, because a fairly significant volume was bought by unscrupulous market participants on the stock exchange or at oil depots and then exported. Now there is no such possibility. This measure just covers everything,” he said .
Sorokin added that now the measure has been introduced indefinitely.
«Therefore, we expect that the volume that vertically integrated oil companies (vertically integrated oil companies — ed.) and bona fide participants sent to the market, will completely cover all needs, moreover, it will create a surplus of fuel on the market, which naturally affects the wholesale price,” Sorokin added.
The introduced temporary ban on the export of gasoline and diesel fuel from Russia does not apply to the countries of the Eurasian Economic Union (EAEU), humanitarian aid, transit transportation through Russian territory, as well as fuel exported by individuals for personal use, follows from a government decree published on Thursday .
Exchange prices for fuel in Russia remained at record levels for several months. Growth in retail prices also accelerated significantly. Experts explained the rise in prices, among other things, by “gray” exports. To combat it, it was proposed to create a list of special fuel exporters. The Ministry of Energy of the Russian Federation reported that it has submitted to the Cabinet of Ministers and the Presidential Administration a draft decree according to which only producers will have the right to export petroleum products.