Administration is deliberating on implementing a brief halt to gasoline export restrictions
In a bid to stabilise rising domestic fuel prices and address supply constraints, the Russian government is preparing to implement a stricter gasoline export ban for August and September 2025. This decision comes as the Russian market grapples with undersupply and escalating prices.
According to recent reports, the Russian government is broadening existing export restrictions to include most producers, not just resellers, marking a more sweeping ban scheduled for the mentioned period. This move is a response to the persistent price increases in wholesale gasoline, which have hit historic highs since late July 2025.
The ban aims to address domestic supply shortages caused by refinery disruptions, maintenance backlogs, sanctions-related delays in spare parts, and soaring domestic demand. It is worth noting that Russia produces over 40 million metric tons of gasoline annually and has increased gasoline exports by about 25% in early 2025. However, current market conditions have prompted the government to restrict exports to ensure domestic availability.
In April 2023, Russia compensated for the volumes of fuel production lost due to refinery shutdowns for unscheduled repairs by reducing exports. This strategy not only helped to compensate for the downtime during repairs but also maintained high fuel reserves.
Despite the increase in gasoline and diesel fuel production from April 22 to 28, 2024, compared to the same period in 2023, the Russian gasoline market remains oversaturated due to the measures taken to close gasoline exports since March 1. From April 22 to 28, 2023, gasoline production was 811.7 thousand tons, lower than the current production levels, while diesel fuel production increased by 3.7%, to 1.66 million tons.
The Russian government is constantly monitoring the market to take measures to prevent both shortages and overstocking. Officials, including the acting Minister of Energy, Nikolai Shulginov, and the acting vice-premier, have confirmed their intention to consider the issue of the suspension of gasoline export in the government in the near future.
In conclusion, the Russian government's decision to implement a stricter gasoline export ban is a proactive step to address the current market conditions and ensure domestic fuel availability. There is no credible report indicating that Russia is considering lifting this ban due to oversupply. Instead, all sources indicate the ban is being tightened owing to undersupply and rising domestic prices, not oversupply.
The Russian government's stricter gasoline export ban is aimed at mitigating the impact of rising domestic fuel prices and alleviating supply constraints within the industry, specifically in the context of energy. Given the escalating wholesale gasoline prices and current market conditions, this move in the finance sector is an effort to prioritize domestic supply over exports.
