... differently across various regions of the world. In Russia, authorities have taken an unprecedented step to stabilize fuel prices. As of August 1, a temporary complete ban on the export of automotive gasoline for all companies, including major producers and refineries, has come into effect until August 31, 2025. This emergency measure aims to prevent fuel shortages in the domestic market and curb the wave of rising gasoline prices during peak summer demand (holiday season and harvesting campaign). Previously,...

... times the inflation rate. This has increased the costs of production and distribution due to higher wages, equipment expenses, and other factors. Moreover, the weakening ruble has driven up equipment import costs. Scheduled maintenance at Russian refineries (refineries) in September is expected to reduce fuel production. Analyst Vladimir Chernov of Freedom Finance Global notes that to counteract potential shortages, refineries increased average daily processing by 20% in August compared to July....

... due to sanctions, Iran's role in the oil market has diminished in recent years, adds Sergey Tereshkin, CEO of the Open Oil Market. Due to U.S. embargoes, over 90% of Iran's oil exports now go to China, where the country's key buyers of Iranian oil are refineries that will bear the brunt of the current crisis, Tereshkin explains. India, Japan, and EU countries halted purchases of Iranian oil after 2019, when the U.S. embargo on its import came into effect, he reminds. "The impact of the conflict ...

... less excess capacity than the diesel segment. According to the CDU TEK, the export share in gasoline supplies was 13% in 2023 (5.9 million tons out of 43.9 million), while in diesel shipments, it was 41% (35.7 million tons out of 87.9 million). Russian refineries, dating back to the Soviet era, were geared toward producing diesel for supplying heavy and freight vehicles across the USSR, which led to a surplus in the domestic market after 1991 that was used for export. At the same time, Russian diesel ...

... only a portion of these export volumes will be reallocated to supply the Russian fuel market, while the remaining volume will be exported as crude oil. Such a 'maneuver' will help oil companies offset the costs incurred due to prolonged downtime at refineries," Tereshkin said. He explained that most Russian refineries are part of vertically integrated companies that operate under cross-subsidization schemes. For instance, part of the revenue from oil exports has often been used to modernize ...