An official from the Group of Seven reported today that the group is considering to impose two price caps on refined products produced in Russia including both traded at premium and at discount.

The group that encompasses Canada, Japan, US and the EU imposed earlier a price cap of $60 bpd that came effective by the end of 2022 in December, in addition of the EU ban on the seaborne Russian oil.

G7 are taking into account announcing price caps on some Russian oil outputs by the next month, to curb Russia's earnings aiming mainly to limit its capacity in funding Russia's war against Ukraine.

However, putting a ceiling for the prices of the oil products is not that easy as it will be more complex than capping the crude price solely, as the price of multiple oil products usually relies on its selling location instead of where it was originally supplied from, added by the G7 official.