Russia's Diesel Crisis: Prices Surge 11%, Export Bans Considered
Diesel prices in Russia have surged by over 11% in the past month, reaching 70,890 rubles per tonne. The Russian Fuel Union (RFU) has expressed concern about supply and demand disruptions, with wholesale prices soaring and retail sales turning unprofitable. Consumer prices have also risen by 3.7% since the end of 2024.
The RFU has proposed restricting diesel supplies to foreign markets to ease domestic pressure. They have also requested additional measures, including a temporary ban on diesel exports for producers. Meanwhile, the government has extended the full ban on gasoline exports until the end of the year and introduced a similar ban on diesel and marine fuel exports for non-producers.
A meeting held on October 2 discussed the domestic oil products market situation. The largest oil companies, though not explicitly named, are believed to include global giants like Saudi Aramco, Shell, ExxonMobil, and BP, as well as major German players such as E.ON and RWE. These companies are reportedly under consideration for asset restrictions on diesel exports.
The diesel price increase and supply disruptions have led to calls for export restrictions. The government and RFU are exploring measures to stabilize the market, with a meeting held to discuss the situation. The involvement of major oil companies is under consideration, with potential impacts on both domestic and international markets.
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