Russia extends diesel export ban until October amid global fuel crisis: What it means for global energy market | Today’s news
Russia has extended restrictions on diesel exports by domestic fuel producers until the end of October, the government said on Wednesday, as tighter supplies add pressure to an already volatile global energy market.
Moscow has imposed export restrictions on gasoline and diesel several times in recent years as it seeks to curb domestic fuel prices and address fuel shortages. The measures came at a time of disruption to Russian refining capacity caused by Ukrainian drone strikes on oil refineries.
“The decision was taken to support the stability of the domestic fuel market and in view of the higher demand for motor fuels during the harvest season,” the government said on Wednesday.
In late August, Moscow extended a ban on diesel exports until the end of September, exempting shipments to countries including former Soviet republics and Mongolia under intergovernmental agreements.
Russia, usually the world’s second-largest diesel exporter after the United States, had already cut overseas diesel shipments over the summer before imposing broader export restrictions.
Trump is considering an export ban due to pressure on fuel prices
Fuel availability and rising prices have become a growing concern in the United States, where diesel prices have climbed above $6.50 a gallon. Supply disruptions related to conflicts involving Iran and Ukraine have increased pressure on fuel supplies and created a potential political challenge for US President Donald Trump ahead of midterm elections.
Earlier this month, Trump attributed the rise in fuel prices to the Russia-Ukraine conflict rather than the war with Iran that his administration had started. He also claimed that Moscow and Kyiv had agreed to stop attacks on each other’s energy infrastructure. Neither Russia nor Ukraine have confirmed any such deal, while strikes on energy facilities have continued.
Trump said Sunday he was “very seriously” considering the export ban as pressure mounts on his administration to lower U.S. fuel prices.
UK diesel prices
Diesel prices in the UK also hit record levels, with motoring organization RAC in a statement on Monday attributing the latest spike to the US-Israeli war with Iran.
The fuel’s premium over crude in Europe rose to about $82 a barrel, according to real-value data compiled by Bloomberg. That’s well above the premium of about $28 a barrel seen in late February, before the U.S. and Israel went to war with Iran and Ukraine stepped up attacks on Russian oil refineries.
According to research by Oxford Economics and Goldman Sachs Group Inc. diesel prices in Europe could rise by up to 50% if the US imposes a ban on fuel exports, which could prompt European countries to draw on emergency reserves.
(With input from agencies)
