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Russian government says fuel cargos to take top priority on railways

The Russian energy ministry said on Friday that the transportation of fuel would take concern on railways as the government attempts to minimize shortages and keep a cover on costs.

Separately, the government said later on Friday that Russian Deputy Prime Minister Alexander Novak informed a meeting with oil producers, officials from energy and farming ministries, as well as Russian Railways, to ensure smooth transport of fuel.

The Kommersant paper earlier stated the government had provided an order, guaranteeing top priority for transport of fuel cargos via trains to tackle traffic congestion and satisfy a. rise in seasonal demand, citing unnamed sources.

Russian refineries have cut fuel production due to interruptions. and many Ukraine's drone attacks.

Russian oil refining capability shut down in the wake of. Ukrainian drone attacks in the very first quarter amounts to about. 4.6 million metric loads (370,500 barrels each day), or some 7% of. the overall output, estimations show, on top of. maintenance related to other causes.

Kommersant said Prime Minister Mikhail Mishustin issued the. instructions on fuel transportation to the Russian Railways,. Energy Ministry and the Ministry of Transport.

The Energy Ministry told that in accordance with its. guidelines, the ministry was drawing up month-to-month schedules for. the transport of petroleum items jointly with oil. business and the Russian Railways.

It also stated that the government's instructions will be. kept track of by a group headed by the Deputy Prime Minister. Alexander Novak.

Top priority transportation from the refineries and delivery of. petroleum products to customers will ensure an increase in. production along with supply additional fuel supply to the. regional oil depots throughout the duration of seasonal need. growth, it said.

This will have a positive result on the price scenario on. the motor fuel market.

The government also stated that domestic fuel and diesel. daily supplies have actually increased by 13,000 lots and 15,500 heaps. respectively in March up until now from February.

It said that Russian gas and diesel stocks. remain high, at 1.9 million tons and 3.4 million tons. respectively.

(source: Reuters)