Key facts
- Russia extended its ban on diesel exports until October 31.
- The ban was expanded in July to cover all fuel producers.
- Refinery maintenance and the need to rebuild fuel reserves before winter were cited as reasons for the extension.
- Diesel prices on the St. Petersburg commodity exchange traded at 70,546 rubles a ton in early September.
- Retail diesel prices reached 88.44 rubles a liter on September 7, an 18.4% increase since the start of the year.
- Three major Russian refineries are operating at significantly reduced capacity due to Ukrainian drone strikes.
Russia will extend its ban on diesel exports for all fuel producers until October 31, Vedomosti reported Tuesday, citing delayed refinery maintenance and the need to rebuild fuel reserves for winter. The ban, which was expanded in July to cover all producers from only traders and small refineries, had been scheduled to expire on September 30.
Diesel prices on the St. Petersburg commodity exchange traded at 70,546 rubles a ton in early September, and retail prices reached 88.44 rubles a liter on September 7, an 18.4% increase since the start of the year. Russia's Energy Ministry stated that the current restrictions "may be adjusted" once supply volumes stabilize and reserves reach adequate levels, without specifying a threshold.
Three of Russia's six largest diesel refineries, accounting for about half of the country's production, are currently offline or operating at approximately a quarter of their capacity due to Ukrainian drone strikes. The Kirishi refinery is fully offline, while the Volgograd and NORSI refineries are running at around 25% capacity. The Taneco refinery was also hit by a drone strike on Sunday.
Russian diesel exports decreased to below 1 million metric tons in June, a substantial drop from approximately 2.5 million tons per month a year earlier. Turkey and Brazil have seen their cargo allotments reduced by at least half. U.S. President Donald Trump urged Ukraine on September 13 to cease attacking Russian refineries, linking these strikes to U.S. pump prices. However, energy analysts dispute this connection, with a KSE Institute study indicating that Gulf-related export losses between March and August were 152 million barrels, more than double Russia's 68-million-barrel decline. Russia's seaborne diesel exports represent about 4% of global trade.