Russia Tightens Fuel Controls as Diesel Prices Soar and Shortages Bite
Russia struggles with escalating diesel prices and shortages, leading the government to impose export restrictions and the Russian Fuel Union to propose supply limits. Prices have risen by 3.7% since December, reaching 70,890 rubles per ton by late September, with a 11% increase in the past month alone.
On October 2, a critical meeting was held to evaluate the domestic oil products market. During this meeting, the Russian Fuel Union (RFT) suggested temporarily halting diesel exports for producers, encouraging them to sell domestically until winter arrives. This proposal is a response to repeated Ukrainian drone attacks on Russian refineries, which have caused fuel shortages and driven up domestic prices.
The government has already extended the gasoline export ban until the end of 2025 and has now introduced a similar ban on diesel and marine fuel exports for non-producers. Vice Premier Alexander Novak stated that these measures aim to secure domestic fuel supply and stabilize prices.
With diesel prices continuing to rise and supplies dwindling, Russia is taking decisive action to ensure domestic fuel security. The recent proposals and export bans reflect the government's commitment to managing the challenges posed by fuel shortages and soaring prices.
