Russia’s gasoline deficit crisis
Drone strikes on refineries in Perm, Nizhny Novgorod, and Yaroslavl forced those plants to shut down by late August 2023, and Russia’s gasoline production dropped to 70% of what the domestic market needs. That left output at roughly 80,000 tonnes per day against demand of around 115,000 tonnes, creating a daily shortfall of 35,000 tonnes.
According to Reuters, fuel supply problems in the country have been building since May. Over the course of August, refineries averaged about 90,000 tonnes of gasoline per day, just 80% of summer demand. The late-August figures thus returned to early-July levels, when Russia experienced its first wave of the fuel crisis. This is a striking situation for a nation that typically exports fuel rather than scrambling to cover its own needs.
Restrictions and reliance on imports
Regional officials responded to the shortage by capping how much fuel a single buyer could purchase and by introducing sales schedules tied to car number plates. Many drivers also began avoiding non-essential trips in August for fear of long queues or empty pumps. While some regions had eased or lifted those restrictions in late July, the scarcity came back within weeks.
Moscow has been turning to Asia and Belarus to make up the shortfall. Sea-borne fuel imports from Asia are projected at about 270,000 tonnes in August, and Belarus is expected to supply about 150,000 tonnes of gasoline. Traders say 220,000 tonnes of imported gasoline had already arrived, averaging 7,000 tonnes per day. Counting those imports, domestic supply in August could reach 97,000 tonnes daily, still only 85% of demand.
Russia has banned gasoline exports until January 31, 2024. Reuters said the Energy Ministry did not respond to requests for comment on the situation.
The ongoing Russian gasoline shortage reveals deep strains in the country’s refining sector, brought on by external attacks and internal pressures.
With export limits in place and imports growing, the coming months could test Russia’s economic stability and the public’s access to fuel. These developments may also reshape the consumer market and alter the country’s overall energy security outlook for the long term.
The recent drone attacks have not only impacted gasoline production but also underscored the vulnerability of Russian refineries across the region. In fact, no oil refinery in Russia has been spared from Ukrainian strikes, raising concerns about the stability of fuel supply as the country grapples with escalating shortages and increased reliance on imports.