Russia Extends Diesel Export Ban Through October

Russia has extended its ban on diesel exports until October 31, according to Vedomosti. The extension was announced after refinery maintenance delays and the need to rebuild fuel reserves ahead of the winter months. The ban, which was initially set to end on September 30, now covers all diesel producers. At the start of September, diesel prices on the St. Petersburg commodity exchange reached 70,546 rubles per ton, while retail prices reached 88.44 rubles per liter, an 18.4% increase since the beginning of the year.

Russia's Energy Ministry stated that the restrictions may be adjusted once supply volumes stabilize and reserves reach adequate levels, but no specific threshold was mentioned. The country's six largest diesel refineries produce roughly half of the nation's diesel, with three of them currently shut or operating at a quarter of their capacity due to attacks from Ukrainian drones.

Kirishi, Volgograd, and NORSI are the affected refineries. Russian diesel exports dropped below 1 million metric tons in June, down from 2.5 million tons a month a year earlier, with Turkey and Brazil losing at least half of their cargo allocations. U.S. President Donald Trump called on Ukraine to stop targeting Russian refineries, linking the strikes to higher U.S. pump prices.

Energy analysts dispute this claim, with a KSE Institute study stating that Gulf-related export losses were 152 million barrels between March and August, more than double the 68-million-barrel drop Russia experienced. Diesel prices in the U.S. reached a record $6.27 a gallon on Tuesday, an 80-cent increase in a month and a 69.5% rise from a year ago.

The Senate's top Republican expressed openness to discussing a U.S. diesel export ban, but no such measure has been proposed by the White House.