Russia's Federal Antimonopoly Service wants to suspend gasoline exports temporarily to keep fuel costs down domestically

Russia’s Federal Antimonopoly Service has reportedly approached several domestic oil companies about a total suspension of gasoline exports during repairs to the country’s oil refineries scheduled for later this year. An official told the news agency Prime that Surgutneftegas has already agreed to halt gasoline exports until the end of September.

Why does Russia want to hold onto its benzin?

• Gas isn’t just a battering ram for Moscow’s foreign policy: it’s also a sensitive domestic political issue. In mid-June, a national survey showed that rising fuel costs may have contributed to Putin’s reelection rating falling to 54 percent (his lowest score since before the annexation of Crimea). Gasoline prices in Russia spiked 7.3 percent between January and May 2018, before federal officials cut fuel taxes to bring consumer costs back down.
• On August 22, the Russian Fuel Union warned that gasoline prices would rise again in 2019, thanks to legislation signed by Putin in early August to raise the country’s value-added tax from 18 to 20 percent. Last year, Russia exported roughly 10 percent of its gasoline production.