Key facts
- Russia is considering a complete ban on diesel exports.
- The move aims to stabilize the domestic fuel market amid disruptions and rising prices.
- Deputy Prime Minister Alexander Novak confirmed the government is weighing the export ban.
- Oil companies have already increased fuel production to maximum levels.
- Ukraine's drone strikes on Russian refineries have impacted fuel production.
Russia is contemplating a complete prohibition on diesel exports as it grapples with domestic fuel market instability, characterized by refinery disruptions, rising prices, and supply shortages. Deputy Prime Minister Alexander Novak announced on Tuesday that the government is evaluating this measure, alongside other potential actions, to bolster domestic fuel supplies. Novak acknowledged the challenging fuel market situation but asserted it remains under control.
This potential ban represents a significant policy consideration, differing from Novak's stance on June 4, when he indicated no immediate need for a broad diesel export ban, though he did not rule out the possibility if market conditions worsened. Currently, Russia already prohibits exports of gasoline and jet fuel for all market participants and restricts diesel and marine fuel exports by non-producers. A comprehensive diesel export ban would further constrain availability in global markets.