On July 8 (Moscow time), according to Xinhua, the Russian government decided to ban diesel oil exports to increase supply to the domestic market amid increasing domestic fuel demand. The new move also comes with a plan to import more petroleum products from July to stabilize the market.
The information was announced by Russian Deputy Prime Minister Alexander Novak at a cabinet meeting with Russian President Vladimir Putin.
Mr. Novak said the ban on diesel exports will help increase domestic fuel supply, contributing to ensuring consumption needs of the economy.
We have applied a ban on diesel exports. This measure will allow increased supply to the domestic market," Novak said.
Immediately after that, the Russian government also announced the expansion of the scope of the temporary ban on diesel oil producers.
According to new regulations, fuel production enterprises are also not allowed to export diesel oil during the period of application of the ban.
However, the Russian government said that fuel supply contracts implemented under intergovernmental agreements will not be affected.
Russian officials expect this measure to contribute to stabilizing fuel supply and limiting price fluctuations in the country.
In addition to tightening exports, Moscow will also implement additional measures to increase supply in the market.
Mr. Novak said that Russia will begin importing oil products in July to support the balance of supply and demand for fuel.
The country will also increase the production of oil products with lower environmental standards to supplement supply to serve the domestic market.
According to the Russian Deputy Prime Minister, combining multiple solutions at the same time will help reduce pressure on the fuel market, while ensuring that production and transportation activities are not interrupted.
The new move was made in the context that the global energy market is still potentially volatile, forcing many countries to strengthen energy security measures.
Russia is one of the largest exporters of oil and oil products in the world. Therefore, adjustments in this country's fuel export policy are often closely monitored by investors and international energy markets.
Temporarily restricting diesel exports is considered a priority of Moscow to ensure domestic market stability before considering demand from foreign markets.
