Russia lifted the ban on diesel exports

The Russian government on October 6 announced it would lift the ban on diesel exports via pipeline, after several weeks of applying this policy.

Diesel is the oil product Russia exports the most, about 35 million tons last year. Of which, nearly 75% is through pipelines.

"The government lifted the ban on diesel exports via pipeline, as long as companies supply at least 50% of the diesel produced to the domestic market," the Russian government said in today's announcement.

The ban on gasoline exports remains in place. Russia last year exported 4.8 million tons of gasoline.

On September 21, the Russian Government issued a temporary ban on the sale of gasoline and diesel to all countries, except for four countries of the Eurasian Economic Union including Belarus, Kazakhstan, Armenia and Kyrgyzstan. This ban takes effect immediately, aiming to stabilize the domestic market.

In recent months, Russia has faced fuel shortages and high prices. This situation strongly impacts farmers during the harvest season.

Russia is currently the world's leading exporter of diesel. After the European Union (EU) banned the import of Russian oil products, the country shifted its exports to Brazil, Turkey, the Gulf region and some countries in North and West Africa. Their ban has pushed up global prices, forcing some buyers to find alternative sources of gasoline and diesel supplies.

However, since the export ban was applied, wholesale diesel prices in Russia decreased by 21%. Gasoline prices also decreased by 10%.

This does not mean retail prices have decreased similarly. However, Russian Deputy Prime Minister Alexander Novak said the ban had begun to have a positive impact. The Russian Federal Antimonopoly Service (FAS) said it has sent instructions to oil companies to request price reductions for oil products.

Ha Thu (according to Reuters)

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