Russia Set to Extend Diesel Export Ban as Refinery Disruptions Mount

Russia is set to extend restrictions on diesel exports beyond the end of September as Ukrainian attacks on Russian oil refineries disrupt fuel production, according to Bloomberg News, as reported by Jake Conley for Yahoo Finance.

Russia is considering extending restrictions on diesel exports as refinery disruptions reduce available fuel supplies. [Photo: Maximcofetea, Wikimedia Commons]

Russia had previously extended its diesel export ban through Sept. 30. Reuters reported on Sept. 16 that the government had decided to prolong restrictions on diesel exports by domestic fuel producers through the end of October.

The developments came after one of the most recent Ukrainian drone attacks on the Moscow oil refinery.

Reuters reported that the refinery halted crude processing after fires broke out at two primary crude-distillation units.

Repairs could take several weeks, according to industry sources.

Before the restrictions, Russia was one of the world's largest diesel exporters.

Reuters reported that the country is typically the world's second-largest diesel exporter after the United States, while earlier estimates put Russia's share of global seaborne diesel exports at roughly 10%.

A prolonged Russian export restriction could further tighten international diesel supplies at a time when fuel prices are already elevated. U.S. diesel prices reached a record of about $6.51 a gallon, according to market reports cited by Reuters and Bloomberg.

Diesel is widely used in freight transportation, agriculture, construction and other industries, meaning higher prices can increase operating and transportation costs.