As the price of wholesale gasoline continues to rise despite an export ban, Russian President Vladimir Putin urged the government to act “more promptly” in response to rising fuel costs on Wednesday.
In response to concerns of shortages in some regions, the Russian government stated last week that it was temporarily banning exports of gasoline and diesel to “stabilize” the domestic market.
“We will count on the fact that the proposed measures work,” Putin said, calling on the government to work more closely with oil companies to lower prices.
“We must treat them with care, but nevertheless, I would ask you to react more promptly to the events that are happening,” Putin told members of his cabinet.
Despite the export ban, the market price of Russian gasoline increased on Tuesday after falling from a record high the previous week.
The supply of oil is being constrained by repair work at refineries, a lower ruble, and rising global oil costs, according to analysts.
Local media sites have reported that a lack of gasoline for agricultural machines has prevented farmers in some areas from harvesting grain.
With inflation exceeding the bank’s target of 4%, Russia’s central bank has warned that economic growth is expected to slow down in the second half of 2023 as a result of rising gasoline prices.
Despite chronically rising inflation and a weak currency, Russian policymakers have largely ignored the economic consequences of Moscow’s protracted onslaught in Ukraine.
