According to the Vedomosti newspaper, the Russian government agreed not to implement a restriction on gasoline exports after a meeting with Deputy Prime Minister Alexander Novak. Evgeny Arkusha, the head of the Russian Fuel Union, confirmed the decision. Another source informed that oil firms have been allowed until September to fix wholesale gasoline prices.
According to Vedomosti, Russian oil refineries have already considerably curtailed exports in favor of supply to the local market. The government is attempting to stabilize domestic prices in the face of rising demand for gasoline during holiday times, as well as planned refinery shutdowns for repairs.
According to the Petromarket research organization, the restriction on gasoline exports may increase supply to the domestic market by 120,000-350,000 tons per month (4-11 percent), resulting in a drop in wholesale prices. However, such a drop, according to General Director of Petromarket Ivan Khomutov, would have a detrimental impact on the profitability of Russian refineries, with marginal losses of approximately 30%.
Dmitry Gusev, Vice President of the Independent Fuel Union, described the export prohibition as “one aspect of manual management” of the market. “It will help to temporarily alleviate the problem of growing wholesale gasoline costs, but it would not address the problem in the long run,” he said, adding that a global modification of the tax system is required.
