Russia Reinstates Petrol Export Ban To Control Domestic Fuel Prices

The Russian government declared on Wednesday that it will reimpose a six-month ban on petrol exports to ensure stability in the domestic fuel market after recent sharp price rises.

The new restriction, effective from September 1 to December 31, 2024, is aimed at maintaining price stability amid ongoing seasonal demand and scheduled refinery maintenance.

This move follows a previous six-month export ban implemented in March, which was temporarily lifted from May to July due to a temporary oversupply in the domestic market.

The ban will not impact petrol deliveries under existing intergovernmental agreements with members of the Eurasian Economic Union, including Belarus, Kazakhstan, Kyrgyzstan, and Armenia.

Despite its substantial energy reserves, Russia has imposed similar export bans on diesel and petrol in the past year, partly in response to rising domestic fuel prices and the economic effects of international sanctions.

In 2023, Russia produced 43.9 million tonnes of petrol, with oil and gas revenues playing a crucial role in supporting the nation’s economy and military efforts in Ukraine.

Recent months have seen Ukrainian forces targeting Russian fuel depots with drone strikes, further disrupting critical supplies for the Russian military.