Russia's fuel crisis enters second wave as Moscow buys expensive gasoline in Asia
Photo: A Russian gas station (Getty Images)
Russia is forced to urgently increase purchases of gasoline and jet fuel from Asian countries due to the second wave of a large-scale fuel shortage, reports The Moscow Times.
In August, imports of motor gasoline and jet fuel into Russia will increase to 270,000 tons. The main reason is a sharp reduction in domestic fuel supplies on the market.
The main routes and schemes for importing fuel:
- about 90,000 tons (one-third of the total volume) will come directly from India;
- the remaining volumes are transferred through a ship-to-ship scheme (from tanker to tanker) in neutral waters near Malaysia and South Korea.
According to analytics companies Vortexa and Kpler, at least two tankers are expected to arrive at ports in Russia's Far East this week. One of them is carrying more than 40,000 tons of Indian-origin jet fuel, loaded in the Johor Strait near Malaysia.
Another vessel will deliver about 30,000 tons of gasoline transferred near the coast of Yeosu, South Korea.
Extremely expensive fuel and threat to gas stations
The first tanker carrying Indian gasoline was unloaded at the Arctic port of Vitino in early August. Supplies were restored only after lengthy disputes over the price, as imports turned out to be significantly more expensive than domestic wholesale prices — more than 100 rubles per liter ($1.20). At least two more vessels carrying motor fuel are now expected to be unloaded.
According to Russia's Federal Antimonopoly Service, in July, the cost of gasoline imported from India reached 100,466 rubles ($1,207) per ton. This is 40% more expensive than the average price of AI-92 gasoline on the St. Petersburg Exchange (71,870 rubles, or $864, per ton).
"The 40% difference, related to the costs of freight and vessel insurance, makes retail sales more difficult: to recoup the costs of purchasing such expensive fuel, retail chains will have to raise prices even further," economist Kirill Rodionov explained.
Ukrainian drone strikes on Russian oil refineries have caused a new fuel crisis in Russia. Amid the fuel shortage in the country, problems with motor oils have also emerged.
Over the past several months, drone attacks have knocked out up to 40% of Russia's oil refining capacity. As a result, about one-third of Russians have already faced fuel shortages.
