Government to discuss extension of gasoline export permit

On February 20, the Russian government will hold a meeting headed by Deputy Prime Minister Alexander Novak to discuss the situation on the domestic market of oil products.

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According to two Izvestia sources, the Cabinet of Ministers will have to make a decision on the future of gasoline exports: either to extend until the end of summer the permission to export gasoline for its major producers, which expires on February 28, or to completely ban supplies to foreign markets for one month.

The Federal Antimonopoly Service (FAS) insists on banning exports ahead of the sowing season and scheduled repairs of oil refineries, while the Ministry of Energy insists on extending preferences for oil producers.

Experts tend to believe that the Cabinet of Ministers will most likely support the Ministry of Energy. According to Yuri Stankevich, deputy chairman of the State Duma's Energy Policy Committee, such a decision is supported by the stable situation on the domestic market: in 2024, fuel supplies to the market have increased - gasoline by 2.8% against the level of 2023 (up to 38.8 million tons), diesel by 4.7% (up to 54.5 million tons). The situation also remains stable this year: most of the fuel produced by Russian refineries has been supplied to the domestic market.

"I expect that the authorization to maintain the export window for producers of oil products will remain in force. Of course, not until the end of summer. Given the rapidly changing situation, the government will discuss this issue at least once every two months," Stankevich said.

Managing partner of WMT Consult Ekaterina Kosareva reminded that the G7 countries may tighten the price ceiling on Russian oil, which may be announced as early as February 24.

"With restrictions on supplies due to sanctions, it will be pointless to impose a ban on exports, both in terms of filling the budget and addressing the issue of overstocking oil depots," - stated the expert.

Read more in the exclusive material of "Izvestia":

Combustible disputes: the government will decide the fate of gasoline exports