The Russian government has announced that the majority of the limitations put in place on September 21 on pipeline exports of diesel through ports have been lifted.
The export limitations on petrol are still in effect.
About 35 million tonnes of diesel were exported from Russia as oil products in 2017, almost all of which went through pipelines. Additionally, in 2022, Russia exported 4.8 million tonnes of petrol.
Following the news, the price of oil declined globally after briefly rising. Brent futures were 0.08% lower at $84.01 per barrel as of 0730 GMT, on pace for their biggest weekly loss since March.
"The government lifted restrictions on exports of diesel fuel delivered to seaports by pipeline, provided that the manufacturer supplies at least 50% of the produced diesel fuel to the domestic market," the government said in a statement.
Russia is the second-largest supplier of fuel by sea after the United States, but the limits on its exports have driven up worldwide prices and prompted some consumers to look for alternate sources of petrol and diesel.
Russia redirected exports of diesel and other fuels meant for Europe to Brazil, Turkey, various North and West African nations, and Gulf states in the Middle East after the European Union outlawed Russian fuel imports due to Moscow's actions in Ukraine.
The fuel is reexported by Gulf states, each of which has a sizable refinery.
In recent months, Russia has been addressing both shortages and high gasoline prices, which particularly harmed farmers during the harvest season.
"The authorities' decision will help solve both problems, but will not solve them completely," Moscow-based BCS brokerage wrote in a morning note.
"We still expect tax changes to be introduced soon that will remove most or all of the arbitrage opportunities for independent traders to gain export profitability."
Wholesale diesel prices on the local exchange have decreased by 21% since the ban's implementation, while petrol prices have decreased by 10%.
Although Russian Deputy Prime Minister Alexander Novak, President Vladimir Putin's point man on the oil industry, claimed that the restriction had begun to produce beneficial benefits, that has not yet translated into the same amount of retail price decrease.
The Federal Anti-Monopoly Service (FAS) announced on Thursday that it has given oil corporations guidelines instructing them to lower the cost of oil-related products.
The government also increased the fuel export tax on Friday for companies that sell fuel but do not produce it from 20,000 roubles to 50,000 roubles ($495.63) per tonne and reinstated oil refinery damper payments in full beginning on October 1.
"The government is quelling attempts by resellers to purchase fuel in advance for subsequent export once the current restrictions are lifted. This also prevents them from exporting... fuel under the guise of other products," it said.
(Sourec:www.cnbc.com)
The export limitations on petrol are still in effect.
About 35 million tonnes of diesel were exported from Russia as oil products in 2017, almost all of which went through pipelines. Additionally, in 2022, Russia exported 4.8 million tonnes of petrol.
Following the news, the price of oil declined globally after briefly rising. Brent futures were 0.08% lower at $84.01 per barrel as of 0730 GMT, on pace for their biggest weekly loss since March.
"The government lifted restrictions on exports of diesel fuel delivered to seaports by pipeline, provided that the manufacturer supplies at least 50% of the produced diesel fuel to the domestic market," the government said in a statement.
Russia is the second-largest supplier of fuel by sea after the United States, but the limits on its exports have driven up worldwide prices and prompted some consumers to look for alternate sources of petrol and diesel.
Russia redirected exports of diesel and other fuels meant for Europe to Brazil, Turkey, various North and West African nations, and Gulf states in the Middle East after the European Union outlawed Russian fuel imports due to Moscow's actions in Ukraine.
The fuel is reexported by Gulf states, each of which has a sizable refinery.
In recent months, Russia has been addressing both shortages and high gasoline prices, which particularly harmed farmers during the harvest season.
"The authorities' decision will help solve both problems, but will not solve them completely," Moscow-based BCS brokerage wrote in a morning note.
"We still expect tax changes to be introduced soon that will remove most or all of the arbitrage opportunities for independent traders to gain export profitability."
Wholesale diesel prices on the local exchange have decreased by 21% since the ban's implementation, while petrol prices have decreased by 10%.
Although Russian Deputy Prime Minister Alexander Novak, President Vladimir Putin's point man on the oil industry, claimed that the restriction had begun to produce beneficial benefits, that has not yet translated into the same amount of retail price decrease.
The Federal Anti-Monopoly Service (FAS) announced on Thursday that it has given oil corporations guidelines instructing them to lower the cost of oil-related products.
The government also increased the fuel export tax on Friday for companies that sell fuel but do not produce it from 20,000 roubles to 50,000 roubles ($495.63) per tonne and reinstated oil refinery damper payments in full beginning on October 1.
"The government is quelling attempts by resellers to purchase fuel in advance for subsequent export once the current restrictions are lifted. This also prevents them from exporting... fuel under the guise of other products," it said.
(Sourec:www.cnbc.com)
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