To address fuel shortages in several Russian regions caused by Ukrainian drone strikes on oil refineries, Deputy Prime Minister Alexander Novak proposed increasing imports of gasoline and diesel.
Novak also said it could be feasible to allow, for six months, the use of the octane-boosting additive monomethylaniline (MMA), which Russia banned in 2016.
The proposals, sent to Prime Minister Mikhail Mishustin, were reported by Kommersant.
According to the newspaper, Novak wants to zero out import duties on gasoline from China, South Korea and Singapore (currently 5%) and increase imports from Belarus. Under the plan, only authorized companies would be allowed to ship fuel from Asian countries via the Far East — Rosneft, NNK and the state foreign trade company Promsyryoimport.
If duties are scrapped, about 150,000 tons of fuel per month could be redirected from the Far East to central Russia. Imports of gasoline from Belarus would more than triple, from 45,000 tons to 150,000. Kommersant notes Russia last imported significant volumes of gasoline in the 1990s.
Another proposed step is a temporary waiver to use monomethylaniline (MMA), an octane-boosting additive that increases gasoline’s resistance to engine knock. Government estimates suggest that could add about 50,000 tons of gasoline to the market each month. The Finance Ministry is also tasked with creating incentives to use ethyl alcohol in gasoline production by canceling the excise tax on ethanol, which is expected to add another 100,000 tons per month.
Russia banned MMA in 2016 when it aligned with European emissions standards; at the time, the Energy Ministry cited the additive’s negative impact on gasoline, vehicle components and the environment.
Experts interviewed by Kommersant say the measures could stabilize the market “but won’t solve its structural problems.”
The shortage linked to strikes on refineries has affected the Moscow, Leningrad, Ryazan, Nizhny Novgorod and Rostov regions; the Zabaykalsky and Khabarovsk territories; and Russia-annexed Crimea.
Since late July, the number of gas stations selling gasoline in Russia has fallen by 360, Kommersant reported.
RBC reported that as of September 28, 38% of the country’s oil refining capacity was idle, removing 338,000 tons of petroleum products from the market each day.
On September 30, the government extended the ban on gasoline exports through the end of the year.