There should be no conflict between cars and fuel

1 september 2015 | Rossiyskaya Biznes-Gazeta

According to the technical regulation of the Customs Union “On requirements for motor and aviation petrol, diesel and marine fuels, fuel for rocket engines and fuel oil”, since January 1, 2016 the production and use for civilian purposes of motor fuel of ecological standard Euro-4 in Russia will cease. Experts believe that the market may witness a shortage of petrol and diesel of Euro-5 standard.

Victoria Gimadi
Victoria Gimadi
Department for Fuel and Energy Sector

Victoria Gimadi, the Head of the Department for Fuel and Energy Sector of the Analytical Center, commented on the situation to Rossiiskaya Biznes-Gazeta, highlighting that the situations with diesel and petrol are different. “There will definitely not be any shortage of diesel on the domestic market, given that even back in 2014 the output of Euro-5 standard diesel exceeded Russia’s total diesel consumption. Specifically, Russia produced 45 million tonnes of Euro-5 standard diesel, whereas total diesel consumption in Russia was just 30.5 million tonnes, and the rest was exported,” the expert added. According to Rosstat data, in the first half of 2015 Euro-5 standard diesel already accounted for around 80% of Russia’s total diesel production.

“With petrol, the situation is less clear, as nearly all petrol produced in Russia is used to meet the domestic demand, i.e. there is no remainder that could be switched between domestic and export sales. In the first six months of 2015 around 80% of petrol produced in Russia was also Euro-5 standard. But overall I do not expect any petrol shortage on the domestic market in 2016. If the worst happens it will make more sense to postpone the ban on Euro-4 petrol for some time than to allow a shortage of Euro-5 petrol,” Ms. Gimadi concluded.

That said, more than half of vehicles in Russia (including both cars and trucks) were built to consume the lower classes of fuel. According to the Rossiiskaya Biznes-Gazeta correspondents this could lead to a 'conflict' between motor vehicles and fuel. Ms. Gimadi believes that there will not be any conflict, and that this is proven by the results of the first half of this year. “At the beginning of this year we banned the sale of motor fuel of Euro-3 standard. Consumers now purchase only higher class fuel and we do not see any conflict”, Gimadi notes.