Global prices of diesel and petrol would hit a record high in the coming months after Russia temporarily banned the exportation of the products on Thursday, September 21.
In a statement, Russia noted that the export ban would apply to all countries outside a circle of four ex-Soviet states with immediate effect.
Russia attributed the temporary embargo to the need to stabilize its local market.
“Temporary restrictions will help saturate the fuel market, which in turn will reduce prices for consumers,” the Kremlin stated in a statement.
The Kremlin statement added: “Previously, to stabilize the situation on the fuel market, the government raised the mandatory supply volumes of motor gasoline and diesel fuel to the commodity exchange … Daily monitoring of fuel purchases for the needs of agricultural producers with prompt adjustment of volumes has also been set up.”
According to Russia’s Ministry of Energy, the measure would prevent unauthorized “grey” exports of motor fuels.
The government however indicated that the ban did not apply to fuel supplied under intergovernmental agreements with members of the Moscow-led Eurasian Economic Union, which includes Belarus, Kazakhstan, Armenia, and Kyrgyzstan.
In Kenya, fuel prices crossed ksh200 in the September review announced by the Energy and Petroleum Regulatory Authority (EPRA).
Energy Cabinet Secretary Davis Chirchir and his Trade counterpart Moses Kuria attributed the sharp rise to global shortage and price adjustments.
However, Deputy President Rigathi Gachagua announced that the Kenya Kwanza administration was seeking alternatives to protect Kenyans from further price hikes.
