Russia Weighs Total Three-Month Gasoline Export Again—This Time Iran is The Cause

The Russian government is considering a return to a total ban on gasoline exports for at least three months. The move aims to combat surging domestic fuel prices caused by the escalating war in the Middle East, The Moscow Times reported on March 25, 2026.

Russia’s Vice-Prime Minister Alexander Novak has called on officials to take “urgent measures” as global energy markets reel from the US-Israeli military operations against Iran. The conflict has effectively blocked the Strait of Hormuz, a vital artery for 20% of global oil and 30% of LNG shipments.

This bottleneck has sent domestic wholesale prices on the St. Petersburg International Mercantile Exchange soaring, with gasoline and diesel prices jumping by 14% and 22% respectively since late February.

The timing of the potential ban is critical as Russia prepares for the spring sowing season and scheduled refinery maintenance, both of which typically drive demand even higher. Market participants noted that producers are currently pushing domestic prices toward “export parity,” adding significant pressure to the retail market, The Moscow Times wrote.

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While current restrictions only apply to non-producers, the proposed quarter-long ban would extend to all exporters in an attempt to shield the domestic economy from a deepening global energy shock.

The internal fuel crisis is exacerbated by a direct price war between Russia and Iran, as both nations compete for a shrinking pool of Chinese buyers with steep discounts. This volatility has already pushed nearly half of Russia’s oil and gas sector into operating at a loss. As domestic refineries struggle with maintenance delays and the logistical strain of the spring sowing season, the government’s ability to stabilize the market is increasingly compromised by these external shocks.

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