Fuel shortages are growing in Russia: panic buying is taking place in many places, and the sale of gasoline and diesel is restricted in every fourth region. Russia's production has collapsed due to the Ukrainian strikes.
The fuel crisis is deepening in Russia: as of yesterday (June 24), restrictions on the sale of gasoline and diesel fuel were in place in 24 regions of the country. These include the Bryansk, Kursk, Belgorod and Voronezh regions bordering Ukraine, as well as a number of central regions and the Volga region: Ivanovo, Vladimir, Lipetsk, Volgograd, Penza, Saratov, Samara, Nizhny Novgorod, Vologda regions and the Republic of Mordovia.
In Siberia, restrictions have been introduced in the Khanty-Mansiysk Autonomous Okrug - the largest oil region in Russia, where 40% of Russian oil is produced, as well as in the Yamalo-Nenets Autonomous Okrug, Tyumen, Kurgan, Omsk, Novosibirsk, Kemerovo and Irkutsk regions. The restrictions also affect North Ossetia and the Republic of Adygea.
In annexed Crimea and Sevastopol, fuel sales have been suspended, and in the Russian-controlled so-called Luhansk People's Republic, it is forbidden to sell more than 20 liters per person.
Increased demand and supply difficulties
Regional authorities explain the measures taken by increased demand, logistical difficulties, rising stock prices and attempts by individual market participants to take advantage of the feverish demand and stockpiling. The governor of Oryol region, where no restrictions have been officially introduced yet, compared what is happening to the panic buying of buckwheat and toilet paper during the Covid pandemic.
In Bryansk and Kursk regions, the sale of fuel in cans is prohibited. Acting governor of Bryansk region Yegor Kovalchuk reported a "insignificant" rise in gasoline prices and acknowledged "some difficulties with fuel supplies in some border areas due to the threat of drone strikes".
The governor of the Kursk region, Alexander Khinshtein, urged residents not to panic. "I understand the concern of the residents of Kursk, but panic only worsens the situation, as it provokes shortages", he said. In the Kurgan region, gas stations in settlements are selling no more than 40 liters of gasoline and 80 liters of diesel per car, and on highways - up to 40 liters of gasoline and up to 200 liters of diesel; sale in cans is also prohibited.
Moscow allows gasoline tankers to enter the city without special permits
The authorities in Moscow have allowed gasoline tanker drivers to enter the city without special permits. "This temporary measure" was adopted at the request of the owners of gas station networks in Moscow and the surrounding area.
"To ensure unhindered fuel supplies to gas stations, gas tanker drivers can enter the city and move around the clock without being issued a special pass. Drivers of such trucks will not be fined if they do not have a pass," the Department of Transport and Road Infrastructure Development in the Russian capital announced.
"A difficult situation, but under control"
At a meeting with the Russian president on June 23, Deputy Prime Minister Alexander Novak described the situation on the fuel market as "difficult, but under control". According to him, in order to solve the problem, the authorities have activated reserves that have never been used before.
"The capacity of all oil refineries has been increased to the maximum, the repair deadlines have been shortened, and planned repairs have been postponed to a later stage" Novak announced. He also recalled that the government has banned the export of gasoline and aviation kerosene and is considering a complete ban on the export of diesel fuel.
At the same time, according to informed sources of the "Vedomosti" publication, the authorities are preparing to increase the purchase of gasoline from abroad. Russia already buys fuel from Belarus, but the incoming quantities are not sufficient.
Production has fallen by 25%
According to data from the Reuters agency, gasoline production in Russia currently covers only about 80% of domestic consumption. After the strikes on oil refineries (in June, facilities in Moscow, Nizhnekamsk, Tyumen and Volgograd were attacked, and in May another 16 refineries) gasoline production has fallen by 25% - to 85,000 tons per day. Meanwhile, summer consumption of automobile gasoline in Russia amounts to 110,000 tons per day.
"Ukraine's campaign against the Russian energy sector has caused massive damage, as a result of which the country is approaching the worst fuel crisis in its history," analysts from Energy Intelligence note.