The wholesale price of Russian high-octane Ai-95 gasoline jumped by around 44% in the past month and a half, close to an all-time peak, amid shortages of the grade due to refinery maintenances and high demand, market players said.

The shortages and price surge are likely to make further case for government to reinstall a gasoline exports ban for August and extend it for the autumn.

The average wholesale price of Ai-95 gasoline grade rose on Friday on the Saint-Petersburg International Mercantile Exchange to 73,605 roubles ($840.72) per tonne, close to an all-time high of 76,068 roubles, reached last September when the government was forced to slap fuel exports ban.

Last week Russian Deputy Prime Minister Alexander Novak said the domestic fuel market had been stable so far, but there were some difficulties with Ai-95 grade.

Market participants said that the fuel producers and regulators had failed to address high demand for gasoline, now skewed towards Ai-95.

The government had initially introduced gasoline exports ban for six months from March 1, which at the time led to a decline in gasoline prices.

However, when the ban was suspended in June, prices started to surge, helped by the maintenance of refineries.

“There are shortages of the five (Ai-95) … There is frenzy, they are afraid that the situation will get worse when the harvest starts,” a trader said.

The price of Ai-95 also outstripped that of Ai-92 grade and the spread exceeded 15,000 roubles per ton for the first time last week.

According to industry sources, output of high-octane gasoline has increased this month so far by more than 3% compared to June and by 7% compared to May.

However, it’s difficult to raise production of high-octane Ai-95 alone at the expense of other gasoline grades, market experts said.
Source: Reuters (Reporting by Reuters; editing by David Evans)