Russia Considers Diesel Export Ban

MOSCOW – The Russian government is contemplating a ban on diesel exports due to increasing domestic prices, according to the Kommersant daily, which cited several unnamed sources.

Russia ranks as the world’s top seaborne diesel exporter, surpassing the United States. Diesel accounts for approximately 35 million metric tons of oil product exports each year, with nearly three-quarters transported by pipeline.

Since the EU imposed a complete embargo on Russian oil product imports in February 2023, diesel shipments have been redirected to countries like Brazil, Turkey, and various locations in Africa, Asia, and the Middle East, including ship-to-ship (STS) transfers.

The Kommersant reported that the commodity exchange price of diesel in European Russia surged by a fifth, reaching 62,000 roubles ($716.35) per ton. This increase is attributed to high demand from farmers amid harvesting season and maintenance at oil refineries, which is expected to drive wholesale prices higher.

While Russia had previously suspended diesel exports last autumn for approximately two weeks, it later resumed pipeline shipments. Furthermore, the country is currently limiting gasoline exports and plans to reinstate a ban on gasoline exports starting August 1.

One source mentioned that a ban on diesel exports might be enacted if prices continue to rise sharply, though no official decision has been made yet. The Russian energy ministry did not provide immediate comments on these developments.

($1 = 86.5500 roubles)