Wholesale Gasoline Prices In Russia Soared To A Historical Record

There may be a deficit.

Gasoline continues to rise rapidly on the Russian wholesale market despite the Russian government's decision to completely ban its export at least until the end of August, reports The Moscow Times.

On Monday, the price of Ai-95 set a new historical record of 70001 rubles per ton at the St. Petersburg Mercantile Exchange. The price rose by 1.18% over the day and 28% since the beginning of the year.

Regular-92 gasoline became more expensive by 1.18% over the day and almost 30% since the beginning of the year, and its price at the close of trading - 66,642 rubles per ton - fell less than 5% short of the absolute maximum shown in September 2023.

Reuters sources in the fuel market said that in August and September, Russia faces a repeat of a full-blown gasoline crisis - similar to what happened two years ago, in 2021, as well as in 2018.

"There could be a local shortage somewhere," one of the agency's interlocutors said. According to another source, as in early 2024, when major refineries stood up from Ukrainian drone attacks, the Russian government may turn to Belarus for help. "The market will now require completely manual control. Will try to postpone (refinery) repairs where possible. Output (of motor gasoline) will be asked to increase. (Imports of) Belarusians will be called in," the Reuters interlocutor said.

The agency's sources said among the reasons for the gasoline shortage are a lack of stocks at private gas stations, a collapse at airports that has caused people to use motor vehicles more, and frequent refinery repairs.

How much fuel exactly Russia produces is not reliably known. Authorities classified official statistics on gasoline and then diesel production back in 2024, after UAV raids on oil refineries. According to Reuters estimates, last year the country's oil refining volumes rolled back to a 12-year low of 269.9 million tons.

The problems with refinery repairs are caused by sanctions, the head of the Energy Ministry, Sergey Tsivilev, told the Federation Council in July. According to him, the "failures" occurring at the refineries are related to problems in the supply of equipment. It fell under European sanctions as part of the first package for the invasion of Ukraine - in February 2022.

"Why are there sometimes failures? Because now in the sanctions regime in which we are: here it is planned, say, for repair of conditionally 4 months, and we have something delayed, something undelivered," - complained Tsivilev.

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