Major petroleum producer warns of fuel shortages in Russia

The introduction of a protective tariff on the export of petroleum products in Russia, which the government is currently discussing, will help alleviate the problem only for a little while. The market will face a much more serious shortage of gasoline afterwards, GazpromNeft CEO Alexander Dyukov said on the sidelines of the Industrial and Energy Forum in Tyumen, RBC reports.

According to him, an increase in payments to the budget by dozens of times will lead to a decrease in the efficiency of oil refineries in Russia. Refining volumes are going to fall, he said. 

Dyukov, the head of one of the largest fuel producers in the country, noted that one would need to analyse the situation in detail to try to find a way out.

On Monday, September 18, it was reported that the Russian government was discussing an opportunity to raise the duty on petroleum products to $250 per ton. Currently, the tariff for light oil products amounts to $6.4; in October it is planned to be increased to $7.1.

Some suggest banning exports of petroleum products from Russia entirely, but the decision has not been finalised yet. Nevertheless, First Deputy Head of the Ministry of Energy Pavel Sorokin said at a plenary meeting of the State Duma that the government was going to take radical steps in this direction.

The cost of fuel on the St. Petersburg International Commodity and Raw Materials Exchange (SPIMEX) has been declining for two consecutive days after months of continuous growth. A ton of AI-95 gasoline fell in price by 5.06 percent to 69,272 rubles, and a ton of AI-92 — by 3.98 percent to 65,651 rubles. The price of diesel fuel decreased by 2.12 percent to 73,447 rubles per ton for the first time since the beginning of September.