Russia may introduce quotas on fuel exports if a complete ban on exports imposed last week fails to reduce persistently high prices of gasoline and diesel, Deputy Prime Minister Alexander Novak said, Reuters reports.
Gas station in RussiaPhoto: Alexandr Blinov / Dreamstime.com
According to the Government, Novak said at a meeting of senior managers of Russian oil companies that the ban on the export of gasoline and diesel initially led to a drop in prices on the commodity exchange, according to News.ro.
The Kremlin and Russia’s Energy Ministry said the current ban on fuel exports, announced on September 21, will remain in place until the domestic fuel market stabilizes.
Analysts expect it to last until Russia’s agricultural harvests and peak fuel demand end in a few weeks.
Export quotas for fuels may be introduced after the export ban is lifted, similar to Russian restrictions on cross-border sales of fertilizers.
The idea of regulations on the fuel market similar to those for fertilizers was presented for the first time by President Vladimir Putin at a government meeting on Wednesday.
Moscow introduced temporary quotas on some of its fertilizer exports at the end of 2021 to ensure sufficient domestic supplies, but has steadily expanded them since then.
Although Russian domestic fuel prices initially fell on the local commodity exchange after the export ban, they rose after an easing was announced over the weekend.
“As a result of the ban on the export of gasoline and diesel, I noticed a drop in prices on the stock exchange. We expect that a reduction in these prices will be passed on to small wholesale and retail segments, as well as to agricultural producers,” Novak was quoted as saying.
“Price increases are unacceptable. If the situation does not change, strict regulatory measures will be taken, comparable to those in force on the fertilizer market,” he added.
Novak also said at the meeting with the oil producers that they should take urgent measures to reduce fuel prices at the gas stations of the oil producers and independent companies.
“Retail price cuts should happen soon,” he said. (Photo source Dreamstime)
