Production was expected to restart in November after the Russian diesel fuel export ban in force at the end of September and the beginning of October 2023 was lifted. But last month’s results were lower than expected, according to Kpler senior oil market analyst Victor Katona. In this respect he is writing RBC.
While diesel production in Russia reached 1.85-1.9 million barrels per day in the summer months, this amount was 1.8 million barrels per day in November. Production dropped to 1.65 million barrels in October due to many refineries switching to fuel oil production.
Company analysts admitted that production volumes in December may return to summer levels, and diesel fuel will account for 33% of the total production of oil products in Russia. This will be facilitated, among other things, by the decline in aviation fuel production. In November, it fell to 195 thousand barrels per day, and this figure turned out to be even weaker than the November 2020 result.
Russian gasoline and diesel prices on the stock exchange rose sharply in 2023 due to the resulting imbalance of supply and demand. To stabilize prices, the government imposed restrictions on fuel exports abroad, increased the export tax, and reduced the shock absorber mechanism. Some measures were later canceled.
In the near future, gasoline and diesel prices in Russia will increase at the rate of inflation and add 20-25 kopecks per liter in January 2024, guess Associate Professor of the Department of Economic Theory at the Russian University of Economics in an interview with socialbites.ca. GV Plekhanova Tatyana Skryl.
Previously the Russian government Recommended Increasing the supply of winter diesel fuel on the stock market.