Fuel Crisis in Russia Worsens
As of June 25, fuel sales limits have been imposed across 32 Russian regions. Shortage reports have come in from 83 regions, including annexed Crimea and occupied territories of Ukraine. The fuel crisis in Russia has been triggered by Ukrainian strikes on oil refineries, causing gasoline output to drop by 25%. The government has introduced fuel sales caps and banned exports of gasoline and aviation kerosene.
Russian Deputy Prime Minister Alexander Novak stated that panic among the population has artificially inflated fuel demand by 20-30%. Most regions now enforce per-vehicle limits of 20-40 liters of gasoline and up to 80 liters of diesel. On highways in certain regions, trucks face a cap of up to 200 liters of diesel. In May, 16 refineries were hit by attacks, with several more struck in June. According to Reuters, daily gasoline production has fallen 25% year-on-year to about 85,000 tonnes, while summer consumption reaches 110,000 tonnes per day.
Government Response and Economic Fallout
On June 23, during a meeting with President Vladimir Putin, Novak described the situation as challenging but manageable. The government has also prohibited exports of gasoline and aviation kerosene and is considering a full ban on diesel exports. Meanwhile, Russia has started purchasing fuel from Belarus. In the Khanty-Mansi Autonomous Okrug (KhMAO), fuel dispensing limits have been introduced: no more than 40 liters of gasoline and 80 liters of diesel per driver at Gazpromneft stations. Notably, KhMAO accounts for about 40% of Russia's annual oil production, and oil extraction contributes over 70% of budget revenues.
In Moscow and the Moscow region, the price of a liter of AI-95 gasoline has reached about 100 rubles at some stations. The cost of fuel canisters in Moscow has surged by 20-40% over the past few weeks. In the Irkutsk region, people are waiting in lines for 7-9 hours, and Governor Igor Kobzev has urgently flown to Moscow to meet with Novak. Buryatia's head, Alexei Tsydenov, confirmed the link between the shortage and Ukrainian attacks, stating:
'The enemy is striking our refineries—this is an objective fact, and it is affecting the fuel market.'
- In Rostov-on-Don and Bataysk, fuel was available at only one out of 12 inspected gas stations.
- In Ingushetia, some Rosneft stations have suspended operations.
- Gasoline prices in Russia rose 3% in a single week, the sharpest increase in at least 20 years, according to Rosstat.
- In Transbaikalia, a private gas station sold gasoline at 140 rubles per liter.
- In Podolsk near Moscow, a Teboil station charged 126 rubles per liter.
Overall, the fuel market situation in Russia remains dire. Alexander Novak has assured the public that 'we have enough fuel on the market. The logistics system is being reconfigured to meet needs. Balancing the market will take some time.' Official Ruslan Kukharuk also noted that 'the region has sufficient oil product reserves.' However, the existence of shortages and sales restrictions points to serious problems in the country's energy infrastructure.
The fuel crisis in Russia could have severe consequences not only for the domestic market but also for the broader economy, as petroleum products are vital for many industries. Sales limits and rising fuel prices may increase costs for transportation and manufacturing, while also fueling public discontent. Government measures aimed at stabilizing the situation may prove insufficient to address problems stemming from external factors, such as the military conflict in Ukraine.
In light of the ongoing fuel crisis, the situation in regions like Crimea and Ryazan has become increasingly dire, with shortages reported following recent refinery attacks. For a closer look at how these events are affecting fuel availability and prices in these specific areas, you can read more about the impact of refinery strikes on fuel supplies in Crimea and Ryazan.