G7 supported the EU on the introduction of a price ceiling for diesel from the Russian Federation at the level of $100-110 per barrel

The G7 countries supported the EU on the introduction of a maximum price for diesel fuel from Russia at the level of $100-110 per barrel, transmits Bloomberg, citing a G7 source.

The interlocutor of the agency claims that with such a price ceiling, the US and partners are “trying to avoid serious market disruptions.” At the same time, the G7 is more likely to lean towards a higher limit, because recently Russian diesel has been trading at $115-120 per barrel.

Too low a ceiling on diesel prices, according to the G7, could cause a jump in fuel prices or interruptions in Europe. It is noted that discussions on this issue are ongoing, but the participants expect that they will be able to reach an agreement by early February.

European Commission earlier suggested the structure of marginal prices for oil products from Russia. The parties agreed to introduce two price limits – for oil products that are sold at a premium to Brent (for example, diesel), and for those that are sold at a discount (fuel oil). Restriction levels have not yet been called. Bloomberg sources reported on January 26, 2023 that the EU is considering limits of $100/bbl. for diesel (about $730/t) and $45/bbl. for fuel oil (about $330/t), but the figures may still change.

Formerly Vedomosti prepared the consensus forecast on price caps for petroleum products, according to which the ceiling for more expensive fuel should be $650/t, and for cheaper fuel – $350/t (see issue dated January 18, 2023). Some analysts also called the range for limiting the cost of diesel from $700 to $800/ton.