There is a lot of turmoil in the global oil market these days. Meanwhile, Russia, a major country in the energy sector, has taken a big step, from April 1, Russia is going to completely ban the export of petrol (gasoline). According to the report of Economics Times, this ban has been officially confirmed by the Russian government. Russian Deputy Prime Minister Alexander Novak has issued a special instruction to the Energy Ministry on Friday. In this instruction it is clearly stated that a proposal should be prepared to ban the export of petrol from April 1. According to the report of local news agency TASS, this ban is likely to remain in force not just for a few weeks but for the entire four months i.e. till July 31.
What is Russia’s plan?
There are many international and geopolitical reasons hidden behind this big decision. Clarifying the situation, Deputy Prime Minister Novak said that the current crisis in the Middle East has created huge instability in the global oil and petroleum products market. Due to this tension, rapid fluctuations in prices are being seen. However, he also emphasized that the demand for Russian energy resources in foreign markets is still high, which is a positive aspect for his country’s economy. In the statement issued by the government, it has also been assured that the processing (refining) of crude oil has remained at the same level as last year, thereby ensuring stable supply of petroleum products.
fear of petrol shortage
To fully understand this ban, we have to look at the events of last year. Last year, there were reports of severe shortage of petrol in Russia and parts of Ukraine controlled by Russia. This was the time when Ukraine intensified its attacks on Russian oil refineries. Along with this, the demand for domestic fuel had also reached its peak in a particular season. The threat to refineries and the sudden increase in domestic demand have alerted the Russian administration. The government wants to ensure at any cost that the supply at the local level is not disrupted.
The real reason for curbing exports
This is not the first time that Russia has shown such strictness on its oil exports. To curb rising fuel prices in the country and deal with any possible shortage, the government has already banned the export of petrol and diesel. If we look at the data related to the industry, Russia exported about 50 lakh metric tons of petrol last year. If we look at it on a daily basis, then this figure comes to about 1,17,000 barrels per day. The direct objective of withholding such a large quantity from the international market and keeping it safe in the domestic market is to keep local prices under control.