Ukraine's strikes on oil refineries spark fuel crisis across Russia — FT
Photo: Ukrainian drones have raised gasoline prices for Russian residents (Getty Images)
Ukraine's strikes on oil refineries have disabled part of Russia's refining capacity. The market is facing an acute shortage of gasoline, according to the Financial Times.
Record prices and fuel shortages
Wholesale gasoline prices in Russia have reached record highs. On August 20, a ton of A-95 gasoline on the exchange cost 55% more than at the beginning of the year and 8% more than at the beginning of August.
The market is experiencing fuel shortages in many regions due to Ukrainian drone strikes on oil refineries.
The crisis has forced Moscow to suspend gasoline exports to keep refined products on the domestic market. However, this measure has failed to curb price increases and exacerbate the shortage.
Strikes on refineries and infrastructure
Since the beginning of July, Ukraine has struck at least four large refineries in Russia. According to experts, the current campaign differs from previous ones in that the strikes are targeting enterprises in a key region, which could put them out of operation for a long time or even forever.
Sergei Vakulenko, a senior fellow at the Carnegie Endowment for International Peace, said that in 2024 the attacks had been numerous but scattered, usually limited to a single plant, and that the damage had been quickly repaired.
Domestic market under pressure
According to broker Finam, at least 10% of Russia's refining capacity has been knocked out. Strikes on railway infrastructure in the central part of the country have exacerbated the situation, causing train delays and fuel supply disruptions.
To curb price increases, the Russian government completely banned gasoline exports on July 28. But even this did not help to fully satisfy domestic demand.
Price increases and shortages in the regions
Retail gasoline prices in Russia have risen by 9% over the year and by more than 5% since January. Some regions are experiencing the most severe shortages, especially those far from the center of the country.
A Chita resident expressed indignation in a local chat room, asking what the gasoline madness was and whether they had suddenly become wealthy. In Transbaikalia and annexed Crimea, local authorities acknowledged shortages of A95 gasoline
Expert forecasts
Analysts expect prices to continue rising until at least September, with shortages continuing in remote regions. However, a systemic crisis is not yet predicted: there is no shortage of diesel fuel, which is needed by the army and agriculture.
Vakulenko concluded that a full-scale fuel crisis that would paralyze the army, transport, and the economy was still a long way off.
On the night of August 13, drones struck an oil refinery in Slavyansk-on-Kuban (Krasnodar Krai).
On the night of August 21, drones again attacked an oil refinery in Novoshakhtinsk, Rostov Region, where a fire broke out.
