RF Ministry of Energy expects no deficit of low-sulphur fuel from 2020 but forecasts rise in prices

RF Ministry of Energy does not forecast deficit of low-sulphur fuel in Russia with the introduction of lMO sulphur cap for marine fuel (not exceeding 0.5%) effective from 1 January 2020, IAA PortNews cprrespondent cites Anton Rubtsov, Director of the Ministry’s Department for Oil and Gas Processing, as saying at the 12th international Argus Russia and CIS Oil Products 2019 conference in Moscow.

“Having drawn up a balance, we see our ability to satisfy the demand in principle and we are not to face the deficit ... But the question is how will the price grow? It should not be feared of being discussed since the consumption of a product with higher quality should cost more. MARPOL requirements are about the quality of fuel. Consequently, EURO-5 and EURO-2 cost differently. Therefore, low-sulphur fuel oil will be more expensive”, said Anton Rubtsov.

The Ministry of Energy representative also emphasized that the tax maneuver reduces the efficiency of “Ships’ call for being fully fueled and leave for sailing around the world”.

According to him, the Ministry is set to conduct price monitoring in the market of marine fuels.