Russia may introduce quotas on fuel exports if a total ban on exports introduced last week does not bring down persistently high prices for gasoline and diesel fuel, Deputy Prime Minister Oleksandr Novak said, according to Reuters.

Gas station in RussiaPhoto: Oleksandr Blinov / Dreamstime.com

According to the government, Novak said at a meeting of top managers of Russian oil companies that the ban on the export of gasoline and diesel initially led to a drop in prices on the commodity exchange, News.ro reports.

The Kremlin and the Ministry of Energy of Russia said that the current ban on fuel exports, announced on September 21, will be in effect until the domestic fuel market stabilizes.

Analysts expect this to continue until Russia’s agricultural harvests and fuel demand peak in a few weeks.

Export quotas for fuel may be introduced after the export ban is lifted, similar to Russia’s restrictions on the cross-border sale of fertilizers.

The idea of ​​regulating the fuel market, similar to fertilizers, was first presented by President Vladimir Putin at a government meeting on Wednesday.

Moscow imposed temporary export quotas on some fertilizers at the end of 2021 to ensure sufficient domestic supplies, but has steadily expanded them since then.

While Russian domestic fuel prices initially fell on the local commodity exchange after the export ban, they rose after the easing was announced over the weekend.

“As a result of the ban on the export of gasoline and diesel, I noticed a drop in prices on the stock exchange. We expect that the decrease in these prices will spread to the small wholesale and retail segments, as well as to agricultural producers,” Novak quotes.

“Increasing prices is unacceptable. If the situation does not change, strict regulatory measures will be taken, comparable to those in the fertilizer market,” he added.

At the meeting with oil workers, Novak also stated that it is necessary to take urgent measures to lower fuel prices at gas stations of oil producers and independent companies.

“The reduction in retail prices should happen in the near future,” he said. (Photo source Dreamstime)