Regions In The Urals And Siberia Have Once Again Been Ordered To Ship Gasoline To Moscow

Crude oil processing volumes in Russia fell to a two-decade low.

Russian authorities have once again launched a campaign to prioritize gasoline supplies to Moscow, where lines at gas stations and complaints from motorists about fuel shortages have been reported again since the middle of last week.

The fuel shortage in the Moscow region is being addressed by reallocating supplies from eastern Russia, industry sources told Reuters. Gasoline shipments are being sent to the capital from the regions, even though an increasing number of them are facing a second wave of the fuel crisis, writes The Moscow Times.

According to Reuters estimates, at least 10 regions of the Russian Federation have reimposed restrictions on gas stations following a series of attacks on refineries that knocked out at least four major oil refineries in August. Among the regions experiencing shortages are the Orenburg and Lipetsk regions, as well as the Kaluga region, which is close to Moscow.

Moscow accounts for 14% of all passenger cars in Russia and 19% of the country’s total road freight volume. However, the key refinery supplying the capital—Gazprom Neft’s Moscow Refinery in Kapotnya—was struck twice in June and sustained damage to both of its oil refining units. According to the Financial Times, the refinery—which supplies about one-third of the capital’s fuel consumption—has been restarted but is operating at one-third of its capacity.

Another refinery near Moscow, the Ryazan Refinery—one of Russia’s top three in terms of capacity—halted fuel production on July 29. Reuters sources said repairs could take two to three weeks.

In July, oil refining volumes in Russia fell to a two-decade low of 3.5 million barrels per day. By early August, volumes had rebounded to just over 4 million barrels per day, but remain 30% below the seasonal average, according to Rystad analysts. Oil companies will not be able to return to processing 5.5 million barrels per day by the end of this year, a source in the fuel market told *Kommersant*. According to the source’s assessment, refinery utilization rates could plummet to new lows in August.

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