Russia Plans Partial Diesel Ban, Extends Gasoline Export Ban to End 2025

The Russian government plans to extend its ban on gasoline exports and introduce a partial ban on diesel exports to non-producers until the end of 2025, aiming to stabilize domestic fuel supplies amid shortages caused by reduced refinery capacity and increased internal demand. The diesel export ban targets resellers but exempts producers, while the gasoline ban affects both, though inter-governmental agreements with some countries remain unaffected. These measures respond to a small deficit of oil products, exacerbated by Ukrainian drone strikes damaging key refineries, which have cut national refining throughput significantly. The export restrictions have led to lower gasoline exports, stabilizing domestic prices but causing ripple effects across Central Asia and Eastern Europe, forcing adjustments in global energy supply chains. Seasonal demand, logistical challenges across Russia's vast geography, and price disparities incentivizing exports over local supply have further complicated the domestic fuel market. The government justifies the bans as necessary to secure domestic fuel availability and prevent inflation amid ongoing geopolitical and market pressures.