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Russia’s gasoline prices fall 6% after export ban announcement – Reuters calculations, traders

Russia’s six-month ban on gasoline exports from March 1 has resulted in a 5.7%decline in wholesale prices in the state’s domestic market in the two days to Wednesday, two traders said and Reuters calculations showed.

On Tuesday,Russia’s government restricted fuel exports for the second time in five months to keep fuel prices in its domestic market from rising.

Since the start of the year, the most popular gasoline brand Ai-92 wholesale price has increased by 22.4%, according to Reuters calculations based on the St. Petersburg exchange (SPIMEX) data.

Since Tuesday, when the plans of the Russian government emerged in media, the wholesale prices for gasoline Ai-92 fell by 2,848 rubles per metric ton to 46,722 rubles per ton (about 508$ per ton), according to Reuters calculations.

Diesel prices fell 3.7% in the two days to 57,487 rubles per ton (about $625 per ton), having increased by 14.9% from the beginning of the year.

After the publication of the announced regulation, the fall in fuel prices will accelerate, traders said.

“… if a ban is introduced, then gasoline prices could easily fall by 10,000 rubles per ton (about $109 per ton),” one of the traders said.

Another trader said that though price have been on the rise amid news on fires and attacks on Russian refineries, now most of buyers gathered sufficient product volumes and would hold off buying, which is likely to result in a decline in prices.
Source: Reuters (Editing by Marguerita Choy)

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