Russia may limit the number of exporters of petroleum products

MOSCOW, July 24 (Reuters) – Russia’s Energy Ministry is considering drawing up a list of exporters of petroleum products as one way to curb gray exports, the ministry said on Monday.

“The establishment of a list of exporters is one of the measures under consideration. The Ministry of Energy will continue to work on limiting the “grey” export schemes, the agency notes.

Previously, the Kommersant newspaper wrote about the government’s intention to limit the number of exporters, according to which the authorities want to introduce a closed list of refineries that will be able to supply gasoline for export.

The government thought about limiting gasoline exports against the backdrop of rising wholesale fuel prices in Russia.

Market participants believe that the reason for the rapid increase in petrol prices is not the “grey” export, the volume of which, in their opinion, did not exceed 40,000 tonnes.

“Gray” or “substitute” exports, when volumes of motor gasoline are exported from the country, initially supplied to domestic consumers at discounted prices due to a suppressor, this year is weak, traders say.

“There is almost no gray export compared to last year. Volatile organic compounds still have regular exports of commercial gasoline, but with very few exceptions, a source at the oil company explains.

According to market participants, Russian gasoline producers are trying to prevent oversupply in order to strengthen wholesale prices to a level that will compensate them for losing half of the surcharge to the muffler from September.

After collapsing to multi-year lows in January, wholesale gasoline prices doubled to record highs in late June and continue to update all-time highs daily throughout July.

Thus, since the beginning of July, the average wholesale price of AI-92 at the St. Petersburg International Commodity Exchange (SPIMEX) has increased by 11% to 64,333 rubles per ton (July 24), by 41% – since the beginning of April, by 96% – since the end of January.

The average stock exchange wholesale price of AI-92 based on refineries is currently 47.61 rubles per liter, according to SPIMEX, taking into account the average cost of delivery to gas stations – about 51.30 rubles per ton. At the same time, according to Rosstat, the average retail price of AI-92 in the Russian Federation is 48.64 rubles per liter. Thus, the current stock market prices make retail sales completely unprofitable.

According to processors, in order to effectively reduce the export outflow of commercial motor gasoline, the government must also limit the export of the raw material for its production – naphtha, which has not been done so far.

In addition, industry experts argue that too restrictive restrictions, worsening the profitability of refineries, will reduce exports, but will inevitably lead to a reduction in the burden on refineries, and thus gasoline production.