Fuel Price Increase in Russia
Russian Deputy Prime Minister Alexander Novak has instructed the Ministry of Energy to draft proposals for raising the price of gasoline, diesel, and aviation kerosene by 1.5 rubles per liter. This move aims to generate additional revenue for oil companies, which will be used to protect fuel infrastructure following recent drone strikes.
The price increase will apply to both wholesale and retail markets for these fuel types. The Ministry of Energy is expected to present its findings in a draft report to President Vladimir Putin. It is noted that fuel price growth at Russian gas stations is currently capped at the inflation rate, as measured by the consumer price index from Rosstat.
The extra funds will go toward safeguarding fuel facilities that have been damaged by Ukrainian drone attacks. In 2025, at least 80 such strikes were recorded, knocking out roughly 20% of the country's refinery capacity. This has caused severe fuel shortages, particularly after attacks on refineries in Ryazan and Crimea.
Economic Impact of the Price Hike
Gasoline prices in 2025 have already surged by 12.7%, the steepest jump in 14 years. In response, Russia imposed a temporary ban on aviation kerosene exports through November 30, 2026. In April 2026, the government announced a state plan for the refining sector, aiming to keep price increases within inflation limits until the end of 2026.
This fuel price hike could significantly impact Russia's economy, especially amid growing fuel shortages. Protecting fuel facilities damaged in attacks has become a top government priority, directly tied to the country's energy security. The price increase may also spark public backlash, potentially leading to social unrest and further fueling inflationary pressures.
The recent decision to increase fuel prices in Russia is closely linked to ongoing challenges in the energy sector, particularly due to Ukraine's attacks on refinery infrastructure. As the country grapples with fuel shortages and rising costs, understanding the broader implications of these strikes on Russia's energy security becomes increasingly crucial.