Russia’s daily diesel exports fell 28% in the first 20 days of September, before the government banned overseas shipments of the fuel in a move to curb domestic prices.
The country’s oil companies exported an average of about 65,700 tonnes of diesel per day from September 1 to 20 via seaports and railways, according to a person with knowledge of the matter. This compares with an average of about 91,800 tonnes per day for most of August.
Russia, the world’s biggest seaborne exporter of diesel-type fuels, shocked global markets last week by imposing a temporary ban on foreign supplies of the road fuel as it struggles to curb rising prices at home. The restrictions went into effect on September 21 and have no expiration date.
The drop in diesel exports ahead of the ban coincides with seasonal refinery maintenance in Russia, which is expected to peak in mid-October. Output of the fuel fell to nearly 230,000 tonnes per day in the first 20 days of the month, the lowest since May.
The redirection of some diesel cargoes towards the domestic market also contributed to the decline in exports. While most Russian diesel usually stays at home, refiners increased daily supplies to domestic customers by nearly 2% to about 157,000 tonnes from September 1-20.
As rising fuel prices threatened Russia’s harvest and ignited inflation, the government moved from non-binding recommendations to legal restrictions on diesel exports. However, the ban provides some exemptions, such as minor deliveries to trade alliance partners of some former Soviet republics, humanitarian aid and transit, as well as shipments that already have waybills and are accepted by the carrier pipelines Transneft PJSC and Russian Railways. JSC.
The government has also excluded bunker fuel, diesels and some middle distillates from the export ban, according to a decree published on the country’s legal database on Monday.
