Russia has announced that it is banning the export of diesel and petrol from Thursday in order to help reduce prices for the fuels in its domestic market.

The country is a major supplier to the global market for diesel, so the ban will hit hardest in that market.

Initial reaction in global markets has been a surge in the price of diesel traded on exchanges.

This will feed through to the prices paid at the pump here in Ireland fairly quickly.

With road diesel prices already north of €1.80/l in most places, this news will only heap pressure on top of already stretched drivers and add to a global shortage that has been driving the fuel higher in recent months.

Significant

The Russian announcement did not say how long the ban would remain in place, but as it has been introduced to move prices in Russia lower, it is likely to stay in force until there is a significant improvement there.

The move by Russia will increase pressure on the Government to address high fuel prices in next month's budget and to abandon the scheduled increase in excise duty at the end of October.