Russia works effectively with Iran within OPEC+ framework, says Deputy PM

Gasoline export ban

Russia on Tuesday ordered a six-month ban on gasoline exports from March 1 to keep prices stable amid rising demand from consumers and farmers and to allow for maintenance of refineries in the world’s second largest oil exporter.

“In order to offset excessive demand for petroleum products, it is necessary to take measures to help stabilize prices in the domestic market,” Novak was quoted as saying in his proposal by RBC.

The top gasoline producers in Russia in 2023 were Gazprom Neft’s Omsk refinery, Lukoil’s NORSI oil refinery in Nizhny Novgorod and Rosneft’s Ryazan refinery.

Russia last year produced 43.9 million tons of gasoline and exported about 5.76 million tons, or around 13% of its production. The biggest importers of Russian gasoline are mainly African counties, including Nigeria, Libya, Tunisia and also United Arab Emirates.

Last month, Russia reduced gasoline exports to non-Commonwealth of Independent States countries to compensate for unplanned repairs at refineries amid fires and drone attacks on its energy infrastructure.

Outages include the halt of a unit at NORSI, the country’s fourth largest refinery, located near the city of Nizhny Novgorod, some 430 km (270 miles) east of Moscow, following what is believed to be a technical incident.

Last year, Russia banned gasoline exports between September and November in order to tackle high domestic prices and shortages.

This time, the ban will not extend to member states of the Eurasian Economic Union, Mongolia, Uzbekistan and two Russian-backed breakaway regions of Georgia – South Ossetia and Abkhazia.

Wholesale fuel prices in Russia have risen since the start of the year. According to Feb. 26 prices on the St Petersburg international mercantile exchange (SPIMEX), 92-octane gasoline had risen by 22% since Jan 1, while 95-octane gasoline was up by 32%. Since the announcement of the export ban, 92 has fallen 3.3%.

The price of 95 gasoline in Russia is about 62 U.S. cents per litre, compared with more than $2.05 in western Europe.