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Forbes: The Gasoline Crisis In Russia Is Getting Worse

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Forbes: The Gasoline Crisis In Russia Is Getting Worse

The Kremlin can no longer turn a blind eye to this.

The fuel crisis in Russia is getting worse, and officials can no longer hide the scale of the problem. The Federal Antimonopoly Service has started issuing warnings to gas station operators across the country over unreasonable price increases. Because of the sharp rise in gasoline prices, many Russian gas station owners risk bankruptcy.

About 50% of gas stations in occupied Crimea and Sevastopol have stopped selling gasoline due to serious disruptions in Forbes.

The Russian Fuel Union has warned that the profitability of gas stations has become negative, and wholesale prices in some regions have equaled or exceeded retail prices. Delays in deliveries of up to two months are draining capital and leading to the closure of independent operators running about 60% of Russian gas stations.

Analysts at Ciala said that by the end of September, 38% of refineries were offline and not operating at full capacity. We are talking about 338,000 tons of crude oil per day.

According to Reuters, the occupation authorities in Crimea froze fuel prices for 30 days and limited motorists to 30 liters per fill-up as shortages worsened after Ukrainian drone strikes on Russian refineries.

Vice Prime Minister Alexander Novak announced plans to remove import duties on gasoline from China, South Korea and Singapore, and temporarily reintroduce an octane-boosting additive that had been banned since 2016 to boost domestic supplies. The constant pressure caused by Ukrainian drone strikes is putting a growing economic strain on Moscow.

Although it is unlikely to end the war definitively, it is becoming increasingly difficult for Vladimir Putin to convince Russians that the fight is worth continuing, given that there is little to see on the battlefield, even as ordinary citizens struggle to find fuel.

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