All news

No balancing payments in cards for Russian oil producers in September — research firm

According to Petromarket, fuel supplies to the Russian domestic market in September were notably less advantageous against export deliveries

MOSCOW, October 3. /TASS/. Russian oil producers will not receive fuel balancing payments for automobile gasoline and diesel shipments to the domestic market in September, the Petromarket research group told TASS.

The total volume of payouts that oil producers will miss out on stands at about 145 bln rubles ($1.5 bln). "The unpaid balancing figure is about 60 bln rubles ($605.5 mln) for gasoline and 85 bln rubles ($857.7 mln) for diesel fuel," the firm’s analysts said.

According to Petromarket, fuel supplies to the Russian domestic market in September were notably less advantageous against export deliveries. The domestic market discount relative to refineries’ export netbacks stood on average across the country at 26,984 rubles ($272.10) per metric ton for 92-octane Regular grade gasoline, 27,358 rubles ($276) per metric ton for 95-octane Premium grade gasoline, and 26,738 rubles ($269.70) for diesel fuel.

Oil companies receive a balancing payment if they are supplying fuel to the Russian market at a price not exceeding a certain level, the so-called cutoff point. Fuel was traded at prices that were much higher than this level throughout September.