The Russian government is weighing two approaches to steady fuel prices in the domestic market. One option is a temporary ban on exporting petroleum products to saturate the local market, while the other involves raising the export tax on petroleum products to 250 dollars per tonne. These proposals were reported by TASS, citing a government source.
According to the agency, the ideas were discussed during a meeting led by Deputy Prime Minister Alexander Novak, which included representatives from companies and various government departments. The meeting produced several proposals aimed at stabilizing fuel prices for consumers at home.
A TASS source indicated that if the export duty is raised to 250 dollars per tonne, the payment would be returned to exporters who supply oil products to the domestic market at the rate set by the government decree, ensuring a transparent and orderly flow of goods within Russia.
Novak reportedly directed that a final decision be prepared promptly, with careful consideration given to how any measure would affect automobile fuel prices and the broader implications for the oil sector and related industries.
Previously, the International Energy Agency noted that Russia’s earnings from oil and petroleum product exports rose by 11.8 percent compared to July, reaching 17.1 billion dollars, or 1.8 billion dollars, in August 2023, highlighting fluctuations in export revenues amid evolving market dynamics [Source: IEA report].
Vladislav Antonov, a financial analyst at BitRiver, commented to socialbites.ca that supply constraints on the Russian Urals crude, rising fuel demand from China and India, and the redirection of domestic crude flows toward Asia rather than Europe contributed to pushing the market price above the 60-dollar-per-barrel ceiling previously observed on certain benchmarks [Source: market analysis].
Earlier discussions and analyses have raised questions about how long oil will remain a central energy source in the global mix, given evolving policy landscapes and shifting demand in major economies.