Russia considers gasoline export ban as local exchange prices rise

Quantum Commodity Intelligence – Russia may ban gasoline exports starting next week if record domestic exchange prices continue, said Ministry of Energy head Nikolai Shulginov Thursday, according to local media reports.

Prices for 95 RON premium gasoline on the Saint Petersburg International Mercantile Exchange (SPIMEX) moved above 60,000 rubles per metric tonne ($812.40/mt) Thursday, up from just over 59,000 one week ago, prompting the intervention by Shulginov.

Russia exported 2.489 million mt of gasoline between January and May this year, including 407,600 mt in May.

Deputy Minister of Energy Pavel Sorokin said Wednesday that a seasonal increase in demand and the recovering economy, combined with refinery maintenance, has led to price increases since the start of the month.

"Since the beginning of the month, 30,500 tons of gasoline have passed through the exchange every day, which corresponds to the level of the same period of the pre-pandemic 2019," Sorokin said, as quoted by local media.

Retail buyers were yet to feel the effects of the rise though, added Shulginov, due to a damping mechanism that pays fuel producers more to keep fuel prices in line with inflation and a return from maintenance of refineries at the end of the month will ease supply issues.

Premium unleaded barges in ARA were assessed at $721/mt by Quantum Thursday, up $43/mt since the start of the week.