Russia Extends Diesel and Gasoline Export Bans Into 2027

Russia has extended restrictions on gasoline and diesel exports through January 31, 2027, just five days after saying the diesel ban would disappear once its domestic fuel market recovered.Recovery, it seems, has been rescheduled.Moscow first banned diesel exports from July 8 through July 31 after repeated Ukrainian drone attacks knocked refineries offline, triggering fuel shortages and price spikes across Russia. Gasoline and jet fuel exports were already restricted.The new order covers gasoline, diesel, marine fuel, and gas oils. Beginning September 1, Russian producers will again be allowed to export diesel, marine fuel, and gas oils, but other exporters will remain locked out. Gasoline restrictions will remain in place.Shipments made under intergovernmental agreements or as humanitarian aid will also continue.Russia has adopted a separate procedure through November 1 to make sure farmers have enough fuel during harvest season. Another measure is aimed at securing gasoline and diesel supplies for state and local institutions.That is a lot of government intervention for a fuel market that was supposedly on the mend.Deputy Prime Minister Alexander Novak said last weekend that several refineries had restarted and conditions at filling stations had improved considerably. He acknowledged, however, that some regions—particularly in Siberia—were still struggling.The extension arrives as the global diesel market is already running short. Goldman Sachs estimates global diesel exports fell 35% in July, or roughly 2.6 million barrels per day, while total refinery throughput dropped 6.5 million bpd from a year earlier.Russia has historically been one of the world’s largest diesel exporters. Every barrel Moscow keeps home is one fewer barrel available to buyers already competing for reduced supplies from the Middle East.Russia may reopen a narrow export route for producers in September. But the broader restrictions now stretch into next year, which says considerably more about the state of its fuel market than assurances that the crisis is temporary.By Julianne Geiger for Oilprice.comMore Top Reads From Oilprice.comIran Rejects Oman’s Proposal to Evenly Divide Hormuz ControlUK Regulator Targets Data Center Land Grab on the Power GridRefined Fuels, Not Crude, Are Driving the Oil Market Crunch