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Russia Is Short Every Third Liter Of Gasoline

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Russia Is Short Every Third Liter Of Gasoline

Production fell to 70% of domestic consumption.

Gasoline production in Russia had fallen to 70% of the average domestic consumption level by the end of August due to shutdowns at major refineries following attacks by unmanned aerial vehicles (UAVs), Reuters reports (translation — The Moscow Times).

Ukraine has intensified its attacks on Russian energy infrastructure, and in August a motor fuel shortage returned to regions of the Russian Federation after a brief respite since late July, when local authorities in some regions began gradually lifting or easing restrictions on fuel sales.

Over the past week, drone attacks forced the suspension of operations at, among others, the Permnefteorgsintez refinery, NORS, and “Yaroslavnefteorgsintez”—major refineries producing significant volumes of automotive gasoline—were attacked by drones and suspended operations. As a result, according to sources, gasoline production by the end of August had fallen to nearly the same level as in early July, ‌at the peak of the first wave of the fuel crisis, which had been gaining momentum ‌since May.

Taking into account the shut-down plants, output by the end of August had fallen, according to sources, to approximately 80,000 per day, and the average gasoline production for August stood at 90,000 metric tons per day, or about 80% of the estimated consumption level typical for the summer period (115,000 metric tons per day).

Consequently, the emergency shutdowns at several refineries this week have widened the gap between gasoline production and market demand to approximately 35,000 metric tons per day.

The shortage has forced Russia to increase its imports of petroleum products. Thus, ‌maritime shipments from Asian countries in August will total approximately 270,000 metric tons, while gasoline imports from Belarus this month will reach about 150,000 metric tons, or 5,000 metric tons per day, according to market participants.

Traders estimate that a total of about 220,000 metric tons of imported gasoline has already arrived in Russia in August, or an average of about 7,000 metric tons per day.

Thus, in the absence of exports—which Russia has banned until January 31—supplies to the domestic market in August, combined with imports, may average 97,000 metric tons per day, or 85% of demand.

The severity of the shortage is also mitigated by some self-restraint on the demand side: many car owners are now avoiding non-essential trips due to the risk of getting stuck in lines at gas stations or running out of fuel, Reuters notes.

In many regions, various restrictions have been imposed on retail fuel sales: limits on the amount sold to a single customer and priority given to vehicles with even-numbered license plates.

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