HomeMediaLatest News"This bacchanalia must be stopped." The government is studying the restriction of fuel exports due to rising prices

"This bacchanalia must be stopped." The government is studying the restriction of fuel exports due to rising prices

08 September 2023

Kondratiev Sergey V. Principal Director on Economic Studies, Head of the Economic Department

Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, commented to the Gazeta.ru internet portal on the Russian oil products prices.

In addition to the reduction of payments on the damper, the growth of fuel prices and the local fuel shortage are affected by exchange rate differences, high external fuel prices, as well as fairly high demand in foreign markets and within the country, Sergey Kondratiev explains.

According to him, now refineries and large oil companies are carrying out shipments for delivery to the domestic market, and traders redirect these flows to export.

"The government may go for stricter export restrictions and the introduction of quotas to ensure the saturation of domestic demand. The Ministry of Energy and the Ministry of Finance have an internal determination to try to stabilize the situation. In addition, we have already passed the season of high fuel consumption. In September, demand is on the decline, October and November should be easier for the Russian market. Seasonality will play into the hands of market stabilization," the expert believes.

Kondratiev Sergey V. Principal Director on Economic Studies, Head of the Economic Department
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