Russia Reimposes Six-Month Petrol Export Ban to Stabilize Domestic Fuel Market

The Russian government announced on Wednesday that it will reintroduce a six-month ban on petrol exports, effective from September 1 to December 31, 2024, in an effort to stabilize the domestic fuel market following recent sharp price increases.

The new restriction is intended to maintain price stability amidst ongoing seasonal demand and scheduled refinery maintenance.

This decision follows a previous six-month export ban that was implemented in March and temporarily lifted from May to July due to an oversupply in the domestic market.

The ban will not affect petrol deliveries under existing intergovernmental agreements with members of the Eurasian Economic Union, which includes Belarus, Kazakhstan, Kyrgyzstan, and Armenia.

Despite its vast energy reserves, Russia has imposed similar export bans on diesel and petrol over the past year, largely in response to rising domestic fuel prices and the economic impact of international sanctions.

In 2023, Russia produced 43.9 million tonnes of petrol, with oil and gas revenues being crucial in supporting the country’s economy and military operations in Ukraine.

In recent months, Ukrainian forces have targeted Russian fuel depots with drone strikes, further disrupting critical supplies for the Russian military.