Sharp Increase in Russian Gasoline Prices
Russia's fuel market is experiencing a dramatic surge in gasoline prices, triggered by drone attacks on oil refineries. This highlights the vulnerability of the country's critical energy infrastructure during the ongoing conflict. Specifically, from February 9 to 13, the average wholesale price for AI-92 gasoline in Russia jumped by 6.9% to 62,431 rubles per ton. Over the same period, the average wholesale price for AI-95 gasoline rose by 5.8% to 63,545 rubles per ton. This marks the most significant price increase since July 2025.
The primary cause of this spike is a series of drone attacks that halted gasoline production at the 13-million-ton Volgograd refinery, owned by Lukoil. Furthermore, a drone raid on February 12 also ignited a fire at the Ukhta refinery. These incidents have placed substantial upward pressure on the market, directly impacting fuel costs for consumers and businesses.
Broader Economic Consequences
This fuel price crisis unfolds against a complex economic backdrop. In January, the average price for Russia's Urals crude oil blend was $37.50 per barrel, which is 42% below the benchmark Brent crude price. Additional pressure comes from U.S. sanctions imposed on Rosneft and Lukoil in October of last year. These combined factors are creating a challenging situation for Russia's domestic fuel market.
The rising gasoline prices point to deep-seated issues within the country's energy sector, exacerbated by external pressures like international sanctions. The attacks on refineries underscore persistent threats to critical infrastructure, which could have long-term implications for fuel market stability. This volatility may ripple through the broader economy, as increased transportation and production costs can lead to higher prices for other goods and services. Facing these global economic challenges, Russia will need to find ways to adapt to the new realities of its energy supply chain.