Russian Deputy Prime Minister Alexander Novak has instructed the country's Ministry of Energy to prepare a draft law banning gasoline exports starting from April, according to a statement from the Russian government.
At a meeting with oil producers on March 27, Mr. Novak said, "global market instability for crude oil and oil products, caused by the Middle East crisis, has led to significant price volatility.
Gasoline and oil price fluctuations occur when Russian oil products are in high demand globally.
Russia's gasoline exports usually average about 100,000 barrels/day. This figure accounts for only a small part of the global trading volume of this product, according to Bloomberg.
However, the oil market is currently tense as the Iranian conflict enters its 2nd month.
The Strait of Hormuz - an important route for energy exports from Gulf countries - has been closed since the end of February, leading to a strong impact on global supply.
Therefore, having more restrictions on global fuel trading will exacerbate the challenges for oil importing countries.
Meanwhile, Ukraine continuously attacks Russia's oil infrastructure, including oil refineries, disrupting Russia's oil production and sales capabilities.
Since the beginning of March, drone attacks have disrupted operations of 2 Russian oil processing facilities, the Saratov plant of Rosneft PJSC in the Volga region and the Kirishi oil refinery of Surgutneftegas PJSC near the Baltic coast.
It is estimated that these facilities account for nearly 10% of Russia's total refining output.
In recent years, Russia has temporarily suspended gasoline exports before high demand periods such as spring and autumn, the peak period of agricultural activity. The most recent export ban on gasoline producers was only lifted in February.
