In a move to address a surplus in supply and declining wholesale prices, Russia has lifted restrictions on gasoline exports, following a similar action taken a month ago for diesel exports, as reported by the country’s Energy Ministry on Friday.
The decision, driven by a surplus in the supply of motor gasoline and a decrease in wholesale prices, underscores the government’s effort to balance the domestic market. The Energy Ministry indicated that the termination of the export ban is based on the significant rise in reserves, approximately two million tonnes, of gasoline in the country.
The government clarified that the removal of export restrictions is not permanent and could be reinstated if deemed necessary. The surplus in motor gasoline supply has been attributed to sustained high volumes of oil refining over the past two months.
Initially imposed on September 21, the ban on fuel exports aimed to address challenges related to high domestic prices and supply shortages. Notably, four countries—Belarus, Kazakhstan, Armenia, and Kyrgyzstan—ex-Soviet Union states, were exempted from the initial ban.
Earlier, on October 6, Russia had already lifted most restrictions on diesel pipeline exports, although limitations on diesel transportation by lorry and railway remained in place. Diesel stands as Russia’s primary oil product export, with the country exporting around 35 million tonnes in 2022, compared to 4.8 million tonnes of gasoline.
The government has affirmed its commitment to voluntary supply cuts in alignment with the OPEC+ lobby’s efforts to stabilize prices amid concerns about fluctuations in prices and demand. Recent reports suggest that these cuts might continue, given the rise in Brent Crude futures to $82.39 per barrel. OPEC+ is set to discuss potential cuts at its upcoming meeting later this month.
An OPEC+ source acknowledged the market’s increased volatility, emphasizing the need for stable trends despite solid overall fundamentals. The group is expected to deliberate on additional measures to ensure market stability during the upcoming meeting, reflecting ongoing efforts to navigate the complexities of the global energy landscape.