Russia Eyes Gasoline Export Ban To Prevent Fuel Shortages, Price Increases

The Russian government is considering a gasoline export ban to prevent domestic fuel shortages and price increases after a decision to reduce subsidies for refineries, industry and government sources told Reuters.

• Russia boosted gasoline exports by around 50% year on year in Q1 amid increased sales to Africa, despite the EU ban on Russian oil productions that came into force on 5 February.
• The Russian finance ministry plans to halve subsidies to oil refiners from July. The government is planning to raise the base price of diesel and gasoline in the subsidy formulas by as much as 50%, sources familiar with the matter said in late April.
• Reuters data suggested the average wholesale price of Ai-92 fuel, the most commonly used grade in Russia, has reached its highest this month since autumn 2021.
• Russian gasoline exports in April and May stood at around 200,000 tonnes/month, down from between 600,000-700,000 tonnes in winter, data from industry sources showed.
• In late April, Deputy PM Alexander Novak said oil refining is currently declining due to refinery repairs but the domestic market is receiving sufficient volume of oil products.