Reuters: Russia may ban gasoline exports due to shortages

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05/24/2023 - 07:22

The Russian government is considering placing a ban on gasoline exports In order to avoid a fuel shortage on the local market and an increase in prices following the decision to slow down the Ministry of Finance’s dampening mechanism for refineries, reports Reuters referring to sources in the government and the industrial market.

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The Russian government may also raise the minimum amount of required motor fuel sales on the commodity exchange, the sources add.

The Russian Treasury suggested in April halving the fuel dampener from July 2023 to July 2024. Gasoline prices have risen to their greatest levels since the start of war in Ukraine as a result of this decision as well as the seasonal uptick in demand brought on by refinery maintenance.

According to the Ministry of Finance, this will result in monthly budget savings of 30 billion rubles. But according to experts, following that oil refineries' profitability could decrease by half, forcing businesses to increase their wholesale costs.

source: reuters.com