Russian Gasoline Crunch: Navigating Domestic Shortages Amid Export Ban

Russia is grappling with a potential gasoline shortage in August, despite a ban on exports, according to trade sources. The factors contributing to this challenge include low domestic inventories, heightened seasonal demand, and ongoing maintenance at refineries.

Implemented on Monday, the export ban, extending through August 31, aims to stabilize the Russian market and mitigate fuel price hikes. However, traders argue this measure may fall short of balancing the market, as export volumes are minuscule compared to domestic consumption.

The shortage is exacerbated by insufficient private retail fuel reserves, partly due to high-interest rates, deterring advanced fuel purchases. Additionally, increased gasoline consumption has been fueled by more travelers opting for cars due to frequent flight delays. Experts predict the shortage may persist until refineries conclude maintenance in October.

(With inputs from agencies.)