Russia eases curbs on diesel exports; will fuel get cheaper?

Russia has decided to relax the restrictions on its diesel exports. The decision has stirred the world oil market, and everyone is watching how it will affect countries such as India. The question is also whether petrol and diesel prices will come down.

The turmoil across the world at present is affecting all countries, India included. People are therefore watching crude oil and petrol-diesel prices closely. Russia's decision means that supplying diesel to the international market will now be easier than before.

The move is said to have been taken after talks between Russian President Vladimir Putin and US President Donald Trump. The main aim of the decision is to increase the availability of fuel in foreign markets while also meeting Russia's own domestic needs. How far diesel prices fall, however, will depend on demand and supply.

Russia says diesel production will meet the country's internal needs and also help supply other countries. According to Russian Deputy Prime Minister Alexander Novak, the government will work with oil companies to arrange diesel exports and supply.

The reason Russia had earlier curbed diesel exports is also known. Ukraine had carried out drone attacks on Russian energy projects, disrupting the functioning of some Russian oil refineries. This had raised concern about the availability of diesel in the country. For that reason, Russia had earlier banned diesel exports, and the ban has now been lifted.

An agreement between Russia and the US to increase diesel supply is said to have been reached. It includes plans to send additional consignments of diesel to the international market. In the initial phase, about 500,000 metric tonnes of diesel are to be supplied. There are also indications that 300,000 tonnes will be supplied in October, 500,000 tonnes in November and 100,000 tonnes after that. These figures and supply dates are yet to be separately confirmed.

Russia is one of the world's largest diesel exporters. If it sends more diesel to other countries, availability in the international market could rise. Countries that need diesel are hoping to get additional supply. This could ease the pressure on prices, but there is no guarantee of that.