The abstract from the press release published by the government says Prime Minister Mikhail Mishustin signed this ban.
Temporary restrictions will help saturate the fuel market, which in turn will reduce prices for consumers.
Earlier to stabilize the fuel market, the government has increased standards supply of automotive gasoline and diesel fuel to the exchange. Also organized daily monitoring of fuel purchases for the needs of agricultural producers with prompt volume adjustment.
The press release says
Tass, a Russian news outlet provided more details on some exemptions and what this means for energy prices
The ban applies mainly to gasoline and diesel fuel, but the government has introduced a number of exceptions. In particular, restrictions do not apply to supplies from Russia to the EAEU as part of indicative balances or protocols under intergovernmental agreements, export of fuel under intergovernmental agreements or as part of humanitarian assistance by government decision, transit of fuel, supplies to Russia’s military outside the country, as well as fuel to support the activities of Baikonur and Spitsbergen.
The restrictions do not apply to the transportation of fuel by individuals for personal use, gasoline and diesel in storage containers for use on the road, deliveries to South Ossetia and Abkhazia, as well as fuel already undergoing customs procedures.
Restrictions on the export of gasoline and diesel will help curb “gray” exports, saturate the domestic market, and may also lead to an additional reduction in prices, an official from the Energy Ministry told reporters on Thursday. The ministry also stressed that the restrictions are temporary.
In recent months, gasoline and diesel fuel have been trading at record levels, but began to decline this week. Last week, a source told TASS that the Russian government is considering two options for stabilizing fuel prices: a complete ban on the export of petroleum products for a certain period to saturate the market, as well as increasing the export duty to $250 per ton on petroleum products. First Deputy Energy Minister Pavel Sorokin said that a protective duty on fuel exports from Russia was being considered as a potential measure to stabilize the market, but how to compensate refineries was not yet resolved.
Earlier, Deputy Prime Minister Alexander Novak attributed the hike in wholesale fuel prices to an increase in prices for petroleum products on global markets, as well as to depreciation of the ruble against the dollar.
As of Thursday, stock prices for gasoline in Russia decreased by 4-5.7% and prices for diesel fuel dropped by more than 2%.
OilPrice.com provided other insights as well:
Russia has been considering a fuel export ban since May in an effort to avert domestic fuel shortages and rein in prices after announcing a halving of subsidies to oil refiners that will start this month in order to keep more money in government coffers to fund its military operation in Ukraine.
Russia was already said to be preparing to slash its diesel exports from its ports on the Baltic and Black Seas by nearly 25% in September compared to the export plans for August. The plan for diesel exports in September lays out the lowest shipments since May this year when spring refinery maintenance was in place, according to industry data reported by Bloomberg earlier this month.
Belarus, a close ally of Russia, has helped Russia with fuel supply in recent weeks, and Belarusian President Alexander Lukashenko said last week it was ready to further increase supplies if needed. Belarus has supplied 60,000 tons of diesel and gasoline each to Russia, Russian news agency Interfax quoted Lukashenko as saying. The Belarusian president is one of the very few allies Putin has left after the Russian invasion of Ukraine.
Lower diesel supply out of Russia would not only reduce Putin’s revenues but could also tighten an already tight global diesel market.
AUTHOR COMMENTARY
Though this ban is only temporary, prices in Europe and the United States are only going to increase even more because of this – at a time when energy costs in the West continue to shoot higher and higher, as most people can no longer pay these bills anymore.
Therefore, as we transition into the colder months ahead, and as you should be already, conserve your energy expenditures and be diligent to do so. Counting your pennies will be imperative moving forward.
The simple believeth every word: but the prudent man looketh well to his going.
Proverbs 14:15
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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There is a report or two that Ukraine is suing at least 2 countries for stopping sending aid.