Russia's Novak supports extension of gasoline export ban through October

Russia's Deputy Prime Minister Alexander Novak supported an energy ministry proposal to extend the gasoline export ban for refineries through September and for non-producers through October, the energy ministry said on Aug. 14 following a meeting about the situation on the oil products market.

Earlier, local media said that Russia's authorities plan to extend the gasoline export ban through September.

The ban, introduced in March, was set to expire at the end of August. It was initially enforced on trading companies and refineries with less than 1 million mt/year of capacity, but in late July it was extended to include larger refineries.

The measure seeks to ensure stability in the domestic market during the period of high seasonal demand and agricultural works, the ministry also said.

The extension follows a recent surge in gasoline prices on the St. Petersburg exchange. The surge has been attributed to the typical summer demand uptick, coupled with low stockpiling in the spring by end-users and tightening of supply due to planned and unplanned refinery outages.

Shortages will likely worsen following renewed drone strikes on Russian refineries, which have led several plants to suspend operations either fully or partially in recent weeks, according to sources.

The ministry, however, said in the statement that the domestic market is fully supplied and spot gasoline prices have started coming off over the last two days, while the situation on the diesel market remains stable.

Separately, Novak said that it is necessary to maintain sufficient supply and also asked oil companies not to buy from each other on the exchange floor. He also asked the energy ministry to keep working with oil companies to balance the market during the period of higher demand while taking into account refinery maintenance and the autumn harvest.