Russian Gasoline Prices Rising Despite Export Ban

Domestic gasoline prices in Russia have risen to their highest level since September, despite a six-month ban on exports commencing March 1.

• Domestic gasoline rose 2% on the day to 60,569 roubles March 13, the first above 60,000 roubles since September.
• Russia enacted a gasoline ban from March 1 until August 31 as a measure to stabilise the situation in the domestic market during a period of high demand.
• However, disruption to Russia’s refining capacity by Ukrainian drone attacks may be driving gasoline prices up further.
• Ukrainian strikes this week have damaged facilities comprising 10% of Russia’s oil processing capacity, DNB Markets said.
• Drone strikes caused a fire at the Ryazan refinery March 13 which produces 6.4% of domestic gasoline output.
• This followed a similar fire at the Norsi refinery March 12, which constitutes 11% of Russia’s gasoline production, according to Reuters.