Russia curbs fuel exports to avoid shortages

By: AFP
Published: 05:02 AM, 22 Sep, 2023
Russia curbs fuel exports to avoid shortages
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Russia's government announced Thursday it was temporarily limiting exports of petrol and diesel fuel to avoid shortages on the domestic market.

The exchange price of domestic petrol soared to a record high this week, in part due to a weaker ruble, rising global oil prices and repair work at refineries curbing supplies.

The announcement comes weeks after Moscow decided to extend a voluntary cut of oil exports until the end of the year in a coordinated move with Saudi Arabia aimed at propping up global crude prices.

"The government introduced a temporary restriction on exports of motor gasoline and diesel fuel to stabilise the domestic market," the government said Thursday.

"The decision was made to stabilise fuel prices on the domestic market," it said, without specifying what kind of measures would be introduced.

It said the restrictions would help "saturate the fuel market" and lower prices at the pump.

Farmers in some regions have been unable to harvest grain due to a shortage of fuel needed for agricultural machinery, local media outlets have reported.

The rising fuel prices come as Russia's central bank warns economic growth is set to slow down in the second half of 2023, with inflation above the bank's target of four percent.

Russian officials have largely shrugged off the economic effects of Moscow's dragging offensive in Ukraine, despite persistently high inflation and a weaker ruble.

Categories : Business