Ministry of Energy: restrictions on fuel exports have been introduced indefinitely

The restriction on fuel exports has been introduced indefinitely, said Russian Deputy Minister of Energy Pavel Sorokin. His statement was published by the press service of the Ministry of Energy.

“Now she [мера] introduced indefinitely. We expect that the market will feel the effect quite quickly, but then it will depend on the saturation of the market and on the results,” Sorokin said.

According to him, the measure “should have an effect very quickly, because leaching will stop, because a fairly significant volume was bought by unscrupulous market participants on the stock exchange or at oil depots and then exported.”

The authorities expect that the volume that vertically integrated oil companies (VIOCs) and “bona fide participants” send to the market will completely cover all needs.

“Moreover, it will create an excess of fuel on the market, which naturally affects the wholesale price,” Sorokin emphasized.

September 21 government introduced temporary restriction on the export of motor gasoline and diesel fuel “to stabilize fuel prices on the domestic market.” According to the Cabinet of Ministers, the measures will “saturate” the fuel market, and this should lead to a reduction in its prices.

Sorokin before this statedthat the authorities will take radical and systemic measures to combat the “gray” export of petroleum products, which will affect the cost of fuel in the country. Minister of Energy Nikolay Shulginov notedthat the total volume of “gray” fuel exports from the Russian Federation since the beginning of this year has already amounted to several million tons.