Russia Faces Fuel Crisis
Russia is facing a major fuel crisis. As of Wednesday, petrol is available at fewer than 30% of filling stations nationwide. This shortage follows a series of Ukrainian drone attacks on Russian oil facilities. These attacks have disrupted fuel production and distribution, according to multiple reports. The monitoring app Gdebenz reported that petrol availability dropped from 41% a week earlier to just 28% this week.
In Moscow, long lines have formed at gas stations for the first time. This has led companies like Gazprom Neft and Tatneft to limit fuel sales. Gazprom Neft has capped petrol purchases at 40 litres per fill-up. Tatneft has set limits at 50 litres for petrol and 60 litres for diesel. State-owned Rosneft has restricted petrol sales to 30 litres at its stations, but diesel sales remain unrestricted.
The crisis is due to significant damage to Russian refineries from the drone strikes. These strikes have targeted oil facilities since early July. Estimates show that damaged refineries account for about 54% of Russia's total refining capacity. This has led to a daily petrol output of only 75,000 to 80,000 tonnes. In contrast, summer demand is between 115,000 and 120,000 tonnes, resulting in a shortfall of about 35%. In response, Russia has started importing fuel, including shipments from India, as confirmed by government officials. A recent shipment of 68,000 tonnes of gasoline arrived from India. This marks a big change for a country that was once a fuel exporter.
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The fuel shortages are likely to impact the transportation sector. This could lead to higher prices for consumers. Restrictions on fuel availability may also affect logistics and supply chains across various industries. Investors will be watching for further developments in fuel imports and any changes in domestic fuel policies as the situation unfolds.
Based on reporting by: euronews.com, theguardian.com