Russia extends diesel export ban through October amid global fuel crunch: What it means for world energy market

Russia has extended diesel export restrictions through October to stabilise domestic fuel markets amid rising demand. This follows previous bans and is a response to reduced refining capacity due to conflicts, impacting global fuel supply and prices.

Russia has prolonged restrictions on diesel exports by domestic fuel producers through the end of October, the government said on Wednesday, as tighter supplies add pressure to an already unsettled global energy market.

Moscow has introduced export restrictions on gasoline and diesel several times in recent years as it seeks to contain domestic fuel prices and address shortages. The measures have come amid disruptions to Russian refining capacity caused by Ukrainian drone strikes on oil refineries.

“The decision has been taken to support stability of the domestic fuel market, also taking into account higher demand for motor fuels during the harvesting season,” the government stated on Wednesday.

In late August, Moscow prolonged its diesel export ban through the end of September, while exempting shipments to countries including former Soviet republics and Mongolia under intergovernmental agreements.

Russia, typically the world's second-largest diesel exporter after the United States, had already scaled back overseas diesel shipments during the summer before introducing the broader export restrictions.

Trump weighs export ban amid fuel price pressure

Fuel availability and rising prices have emerged as a growing concern in the United States, where diesel prices have climbed above $6.50 a gallon. Supply disruptions linked to the conflicts involving Iran and Ukraine have added pressure on fuel deliveries, creating a potential political challenge for US President Donald Trump ahead of the midterm elections.

Earlier this month, Trump attributed the rise in fuel prices to the Russia-Ukraine conflict rather than the war involving Iran, which his administration launched. He also claimed that Moscow and Kyiv had agreed to halt attacks on each other's energy infrastructure. Neither Russia nor Ukraine confirmed any such agreement, while strikes on energy facilities continued.

Trump said on Sunday that he was considering an export ban "very seriously" as pressure mounts on his administration to bring down fuel prices in the US.

UK diesel prices

Diesel prices in the United Kingdom have also reached record levels, with motoring organisation RAC attributing the latest surge to the US-Israeli war with Iran in a statement on Monday.

The premium of the fuel over crude oil in Europe has risen to about $82 a barrel, according to fair-value data compiled by Bloomberg. This is sharply higher than the roughly $28-a-barrel premium recorded at the end of February, before the US and Israel began their war with Iran and Ukraine intensified attacks on Russian oil refineries.

Diesel prices in Europe could surge by as much as 50% if the US imposes a ban on fuel exports, potentially prompting European countries to tap emergency reserves, according to research by Oxford Economics and Goldman Sachs Group Inc.

(With inputs from agencies)

About the Author

Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X

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