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While Russian forces are engaged in denazification and demilitarization in Ukraine, Mikhail Mishustin’s government has begun the “de-gasification” and “de-dieselization” of Europe. The first visible results of this
All car owners know that the price of fuel has risen to crazy levels. And many of them are aware that the Russian government has banned the export of gasoline and diesel from the country in an attempt to stop prices at gas stations and on the stock exchange. It is true that this decision does not apply to supplies abroad entered into before Prime Minister Mishustin signed the corresponding order.
This means that tankers fully filled with fuel will continue to leave Russian ports for some time. And trains with tanks have to crawl past border checkpoints. These types of processes will continue slowly for a few more weeks until all the promised petroleum products reach their recipients. And then the fun begins.
The ‘market deception’ can be seen most clearly and vividly in the example of diesel fuel. I remember that domestic farmers have been complaining about astronomical prices and the shortage of diesel fuel for the past two months. Meanwhile, Russian refineries can produce twice as much heavy fuel as needed for domestic consumption. Over the years, hundreds of thousands of barrels of ‘surplus’ have been shipped to European markets every day. Before the introduction of European sanctions against the Russian Federation, local oil product needs were covered by approximately 53% by our producers. In early 2023, Europeans formally abandoned domestic diesel fuel and gasoline. But in reality nothing has changed: Turkish intermediary companies simply appeared in the supply chain.
The shortage and increase in fuel prices in Russia arose because it is slowly becoming more expensive in Europe and now the same diesel costs there about $140 per barrel – about 13,500 rubles at the current exchange rate. Despite the fact that the wholesale price of such a “barrel” is now on average in Russia at the level of 9,000 rubles. Naturally, under such conditions, all available (and inaccessible) fuel was wiped from the domestic market for export.
Experts say the world has been facing a diesel shortage for several months. This increases its prices, as we have already said, in Europe. And based on last September’s results, the total supply of fuel from Russia to those same global markets is expected to decline by as much as 25%. And next month they have every chance to go to zero – if the Russian government does not lift the ban on fuel exports, since the shortage on the domestic market has not yet been eliminated and prices have not yet come to their senses.
Europeans will have to urgently look for a replacement for Russian-Turkish supplies. Meanwhile, there is no excess motor fuel in the world, nor is it expected to be so. Therefore, we have every chance to see how this fall European motorists will have to deal with exactly the same wild dynamics of price tags at gas stations that were observed in Russia last July and August. And in our country (in theory!) the costs of petroleum products will decrease in parallel. So the wallets of Europeans will suffer in favor of the Russian motorist! For once…
All car owners know that the price of fuel has risen to crazy levels. And many of them are aware that the Russian government has banned the export of gasoline and diesel from the country in an attempt to stop prices at gas stations and on the stock exchange. It is true that this decision does not apply to supplies abroad entered into before Prime Minister Mishustin signed the order in question.
This means that tankers fully filled with fuel will continue to leave Russian ports for some time. And trains with tanks have to crawl past border checkpoints. These types of processes will continue slowly for a few more weeks until all the promised petroleum products reach their recipients. And then the fun begins.
The ‘market deception’ can be seen most clearly and vividly in the example of diesel fuel. I remember that domestic farmers have been complaining about astronomical prices and the shortage of diesel fuel for the past two months. Meanwhile, Russian refineries can produce twice as much heavy fuel as needed for domestic consumption. Over the years, hundreds of thousands of barrels of ‘surplus’ have been shipped to European markets every day. Before the introduction of European sanctions against the Russian Federation, local oil product needs were covered by approximately 53% by our producers. In early 2023, Europeans formally abandoned domestic diesel fuel and gasoline. But in reality nothing has changed: Turkish intermediary companies simply appeared in the supply chain.
The shortage and increase in fuel prices in Russia arose because it is slowly becoming more expensive in Europe and now the same diesel costs there about $140 per barrel – about 13,500 rubles at the current exchange rate. Despite the fact that the wholesale price of such a “barrel” is now on average in Russia at the level of 9,000 rubles. Naturally, under such conditions, all available (and inaccessible) fuel was wiped from the domestic market for export.
Experts say the world has been facing a diesel shortage for several months. This increases its prices, as we have already said, in Europe. And based on last September’s results, the total supply of fuel from Russia to those same global markets is expected to decline by as much as 25%. And next month they have every chance to go to zero – if the Russian government does not lift the ban on fuel exports, since the shortage on the domestic market has not yet been eliminated and prices have not yet come to their senses.
Europeans will have to urgently look for a replacement for Russian-Turkish supplies. Meanwhile, there is no excess motor fuel in the world, nor is it expected to be so. Therefore, we have every chance to see how this fall European motorists will have to deal with exactly the same wild dynamics of price tags at gas stations that were observed in Russia last July and August. And in our country (in theory!) the costs of petroleum products will decrease in parallel. So the wallets of Europeans will suffer in favor of the Russian motorist! For once…
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
