Deputy Prime Minister Alexander Novak of Russia held a discussion with leaders from the oil sector about ensuring fuel deliveries to farmers and other agricultural producers. The Russian government is clearly focused on stabilizing supply and pricing within the agricultural sector amid a volatile energy market.
Participants observed that there is currently no shortage of automotive fuel for the broader market. Oil company representatives pledged to provide the necessary motor fuel volumes to farmers and agricultural entities to support planting and harvest activities, according to the official briefing.
It has emerged that Russia’s Ministry of Energy is examining possible steps to limit fuel exports. This includes both formal export restrictions and the control of informal or gray fuel shipments out of the country. Without such measures, the situation could spiral, as retail and wholesale gasoline and diesel prices reach record levels. Farmers are raising alarms about a potential diesel shortage for next year’s sowing and harvest campaigns. Market participants attribute the new fuel stress to inflation and the weakening ruble, while independent experts argue that the oil sector may be trying to bridge the gap created by these macroeconomic forces.
Previously discussed concerns included how long oil will remain a dominant source of global energy and the implications for national energy security. (Source: socialbites.ca)