Moscow Calls on Producers to Up Domestic Fuel Deliveries
Moscow is demanding that Russian producers step up gasoline and diesel deliveries to the domestic market and for exchange trading, TASS reported on Wednesday, after the Energy Ministry said Russian fuel market supplies are now stable. "Deputy Prime Minister asked oil companies to maximize deliveries of gasoline and diesel fuel to the domestic market and for exchange trading, and to proactively utilize capacities of refiners becoming free as a result of timely exports of oil products," the government.
Moscow views the situation as having stabilities after Cabinet discussions on “the balance of demand, supply and deliveries of petroleum products to various regions in April - May 2024”, reads a government statement.
In September last year, Russia moved to restrict diesel and gasoline exports to stabilize domestic fuel prices in the face of soaring prices and shortages as crude oil prices rallied and the Russian ruble weakened. In October, the ban on diesel was lifted on the condition that at least 50% of producer supplies fed the domestic market. The 2023 ban on exports affected those to Turkey, the Middle East, Africa and South America, the markets to which Russia shifted its diesel exports in early 2023 as a result of an EU embargo.
In November last year, the gasoline export ban was also lifted.
In January this year, Russia saw domestic diesel supply jump 17% and gasoline supply jump 7% as a result of the restrictions.
Two weeks ago, Bloomberg industry data indicated that Russia could see a 21% decline in exports of diesel from its key Baltic and Black Sea ports in April due to shut-ins caused by Ukrainian drone attacks on Russian refineries, which could cause a middle distillate crunch on the wider markets.
By Charles Kennedy for Oilprice.com