The government has prohibited gasoline exports from August 1 to 31, extending this ban to major producers, although previously it only applied to traders and smaller oil refineries (OR). "The decision was made to maintain a stable situation in the domestic fuel market during the period of high seasonal demand and agricultural fieldwork," states a government decree.
Prices Increased by 36%
The price of AI-92 gasoline on the St. Petersburg exchange on July 28 amounted to 65,589 rubles per ton, having declined slightly from a peak of 66,601 rubles per ton recorded on July 23. Since the beginning of the month, the price has risen by 2.4%, and by 24% since the beginning of the year. The exchange price for premium AI-95 gasoline was 74,953 rubles per ton on July 28, down from a peak of 76,330 rubles per ton. The price has increased by 8.6% since the beginning of the month and by 36% since the start of the year.
According to the latest published data from Rosstat, as of July 21, AI-92 gasoline at gas stations averaged 57.66 rubles per liter, up by 1.1% since the beginning of the month and by 4.5% since the end of last year. AI-95 gasoline rose by 1% since the start of the month and by 4.5% since the beginning of the year, reaching 62.90 rubles per liter.
The decision to impose the ban was made despite the fact that just recently, the Ministry of Energy opposed such actions, believing that there was no need for them, as the market's demand for petroleum products was fully satisfied.
Why the Export Ban?
The introduction of a temporary ban on gasoline exports from Russia in August 2025 relates to a combination of factors that occur annually and invariably lead to rising fuel prices domestically: scheduled repairs at refineries, seasonal increases in demand from motorists and the agricultural sector, as well as spikes in stock prices, including due to gray exports, explained Forbes by Alexey Ivanov, the owner of the commercial vehicle dealership network "Alliance Trax." "Previously, verbal interventions were used instead of this mechanism: government representatives would approach producers, stating the need to influence gasoline prices. But eventually, these measures ceased to be effective," he adds.
In gray exports, traders purchase gasoline from the domestic market and send it abroad where prices are higher. To eliminate this scheme, exports were previously only permitted for the producers themselves, i.e., refineries. However, this measure did not effectively combat gray gasoline exports.
"I believe the decision is driven by the desire to lower prices, as has been stated," said Alexander Titov, a senior expert at the Institute of Energy and Finance (IEF), to Forbes. "In May-June, there were reports about high gasoline exports, and domestic prices began to rise. Therefore, the government decided to revert somewhat to manual control and impose an export ban, especially since demand is indeed seasonally high right now." According to sources from Reuters, in January-May of this year, Russia increased gasoline exports by approximately 25% year-on-year, reaching 2.51 million tons.
The ban is connected to the accelerated growth of automobile gasoline prices, agrees Sergey Tereshkin, CEO of the oil products marketplace Open Oil Market. "During the summer, gasoline prices tend to rise rapidly, and regulators have to take action," he told Forbes. "The export ban should cool off prices on the exchange and at retail. Most likely, in the short term, this measure will have the necessary effect; otherwise, regulators will extend the ban for a longer period."
Ivanov from "Alliance Trax" also notes that during the summer, demand for gasoline sharply increases from the agricultural sector. "Although diesel still predominates in agricultural machinery, the use of gasoline-operated devices has significantly increased in recent years," he notes. "Farmers use gasoline not only for cars and motorblocks but also to fuel gasoline generators, pumping stations, and other machinery necessary for their activities. Gasoline has become a fully-fledged fuel for this industry. Seasonal work requires a consistent supply of fuel, and the government must ensure priority access to fuel for agricultural producers in the domestic market."
According to Titov from IEF, the one-month ban may be related, among other things, to maintenance at the Kirishinefteorgsintez refinery owned by Surgutneftegas (KINEF), the second-largest enterprise in Russia with an oil refining capacity of 21 million tons per year. The plant has always been a major exporter and producer of gasoline. According to Titov, scheduled repairs began at the facility in July. "While the plant is under repair, it won't incur losses from the export ban, and on the other hand, there needs to be some way to add gasoline to the domestic market, especially because of the repairs at 'Kirishin' [KINEF]. Thus, the export ban was implemented for one month," says Titov. KINEF is a major supplier of oil products for St. Petersburg, as well as the Leningrad, Novgorod, and Pskov regions.
Manual Control
Last year, the Russian government also fought against rising prices. Beginning March 1, an export ban was implemented, which was then lifted from May 20 to June 30 "considering the saturation of the domestic automotive fuel market," and subsequently, permission for gasoline exports was extended for another month—until the end of July.
However, in August, the embargo was reinstated until the end of December "to maintain a stable situation in the fuel market during the ongoing seasonal demand and the scheduled repairs taking place at refineries." In November, the government lifted the ban on gasoline exports for oil product producers, while for other suppliers the measure was extended until the end of January 2025. In March of last year, the ban on diesel fuel exports imposed in September 2023 expired.
In February, the government again introduced a ban on automobile gasoline exports from March 1 to August 31 for everyone except oil product producers. The decision was made to maintain a stable situation in the domestic fuel market, support the oil refining economy, and combat gray gasoline exports, the government reported.
Source: Forbes
