Vladimir Putin has decided to ease subsidy rules for Russian refiners. The changes allow enterprises to receive assistance even when fuel prices in the market significantly exceed threshold levels. These new rules will come into effect on October 1 and will remain in force until May 1.
According to Putin's decree, refiners will have the right to subsidies even if wholesale prices for diesel fuel and gasoline significantly exceed threshold prices.
These subsidies are intended to support oil companies in supplying fuel to the domestic market, even when export prices become more advantageous. This decision was made due to Ukraine's attacks on the Russian oil industry.
Increase in Fuel Prices
Russia's Deputy Prime Minister Alexander Novak announced a 10 percent increase in subsidized fuel prices starting in September. The maximum level of market price increase has been raised to 20% for gasoline and 30% for diesel fuel.
The cost of gasoline in Russia rose by 2.58% in September 2025, the highest rate since 2018.
As a result of Ukrainian military attacks, Russia has lost up to 20% of its domestic gasoline demand. The country is now forced to increase fuel imports from Belarus and China.
Vladimir Putin has amended the fuel subsidy rules for Russian refiners, allowing enterprises to receive assistance even at high fuel prices. These changes are intended to support oil producers in production and meet the domestic market's needs, as Russia faces difficulties due to geopolitical conflicts. The increase in subsidized fuel prices is also a response to the loss of domestic demand and compels the country to consider fuel import options.