EU diesel prices increased by 5% due to Russia’s temporary restrictions on fuel exports

According to The Guardian newspaper, the Russian authorities, in an effort to solve the problem of rising fuel prices in the country, at the same time “dealt a blow to Europe” with their decision to limit exports.

The newspaper’s experts note that the ban on the sale of fuel abroad was to be expected: in September alone, Russia reduced sea supplies to 1.7 million tons, almost 30% compared to August.

A new ban on the export of commercial gasoline and diesel fuel was announced on September 21, but export destinations to Abkhazia, South Ossetia, the Eurasian Economic Union (EAEU) countries and several other countries remained available, if This was provided for in intergovernmental agreements.

In the context of the news, the prices of petroleum products on the Stock Exchange accelerated their decline and market experts wondered how long the restrictions could last, which lead directly to a surplus of diesel fuel (the terms were not specified in the resolution itself). .

Representatives of the Ministry of Energy mentioned that the decision may be “indefinite”; Presidential press secretary Dmitry Peskov clarified that exports will be available again “immediately after the market stabilizes,” but analysts are confident that the restrictions will last at most half a month, otherwise the market will begin to have excess stock.

Transneft, for example, already has 2.95 million tons of diesel fuel left in its factories, oil depots and in the system, Kommersant learned. If export volumes are redirected to the domestic market, the company will not be able to accept more than 400 thousand tons, and then its work will be paralyzed by an excess supply of diesel.

The publication’s experts estimate the flow to the domestic market at 200,000-300,000 tons per month. The situation is similar in other companies, which means that refineries such as Taneco, Kinef, Volgograd, Tyumen and others have no more than two weeks until they are “flooded” with diesel fuel in a context of gasoline shortages.

Market participants reported the risks to Deputy Prime Minister Alexander Novak at a special meeting, but a compromise has so far not been possible. It is planned to hold such meetings once a week, but it is already clear that not only in business, but also in government, not everyone considers the imposed restrictions justified.

Thus, Interfax quotes the words of the head of the Energy Committee of the State Duma, United Russia deputy Pavel Zavalny, who is confident that the new measures will not help and it is “impossible” to keep gasoline prices low in Russia.

“In the context of a reduction in payments for the buffer and an increase in the tax burden in the form of an increase in the tax on mineral extraction, it is necessary to increase payments for the buffer to subsidize supplies to the domestic market. but the opposite happened,” the agency quotes the deputy, highlighting that it also gives restrictions on fuel exports “one week – two, maximum one month.”