HomeMediaLatest NewsWhy do we need a ban on gasoline exports?

Why do we need a ban on gasoline exports?

28 February 2024

Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department

Alexey Gromov, Principal Director on Energy studies of the Institute for Energy and Finance, commented to the Neft and Capital Internet portal on the reasons for the ban on gasoline exports from Russia.

Answering the question why such a ban is being prepared right now, Alexey Gromov said that the Russian authorities over the past month, observing the situation, came to the conclusion that there may be a shortage of gasoline on the market, which can throw prices up. Nevertheless, the accident at the Nizhny Novgorod refinery played a significant role, and if you do not intervene, the trend with an imbalance of supply and demand will lead to an increase in cost. Obviously, we would not like to allow this, and even on the eve of the elections.

"This is not a critical factor for Russia, neither from the point of view of filling the budget, nor from the point of view of exporting petroleum products. First, we will continue to export gasoline to the EAEU and a number of other neighboring countries, i.e. many contracts remain in force.

Secondly, the sale of gasoline abroad does not go in the same volumes as dark petroleum products or diesel fuel. If its exports had stopped, the consequences would have been serious. In the fall of 2023, there was such an attempt. It lasted only 2 weeks, after which the measure had to be canceled due to the threat of overstocking the domestic market and overflow of diesel tank farms.

Russia consumes almost 90% of the gasoline it produces, so its ban did not play a critical role for the general export of petroleum products. But this is a clear signal for the market to stop the price increase," the expert explained.

As for the fuel damper in this situation, Alexey Gromov noted that since the volumes that fall under the ban will not be on the foreign market, it means that the damper for those who produced them will not be paid.

"I do not see a direct connection between the ban on gasoline exports and the adjustment of the damper or any additional innovations in this direction," the expert concluded.


Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department
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