Why is this important: Russia is not used to rising and shortages in gasoline prices at this time, so demand brought harvests and Russians hit the roads for the last big holiday of summer. But this year’s shortage shows how Attack on Ukrainian oil refineries 3 The war at 1/2 years old has an impact on ordinary consumers.
Gas stations are dry in some parts of Russia after Ukrainian drones attack Refineries and other petroleum infrastructure Drivers have been waiting in long lines over the past few weeks, and authorities have resorted to cutting sales completely.
Wholesale Price for St. Petersburg International Mercantile Exchange for A-95 Gas – Highest Octane – Spiked to record highs last week, rising about 50% higher than January.
Russian media reported that fuel shortages are colliding with consumers in the Far East and several regions below Crimea Peninsulawas illegally annexed from Ukraine by Moscow in 2014.
Media in North Korea and adjacent Primory region reported long routes and prices at local gas stations of around 78 rubles per liter (approximately $3.58 per gallon). A journalist at local news outlet Primpress has discovered that other drivers are trying to sell gas online for 220 rubles per liter (about $10.12 per gallon).
Authorities suspended public sales on Monday in the Krilsky district of the Kuril Islands in northern Japan due to a shortage of gas on the lower Octane A-92. In Crimea, a popular resort area, some businesses sold fuel only to the owners of coupons or special cards.
The normal price rise will worsen this year
Russia is not a man who doesn’t know about gasoline prices rising at the end of summer. However, this year’s shortage has been exacerbated by attacks on Ukraine’s oil refineries. 3 1/2 year old war. Larger, more concentrated attacks cause more damage and hinder production.
Ukraine previously targeted energy infrastructure, but recent strikes have been more successful, targeting more drones with more focused facilities groups.
“Ukrainians are attacking the refinery arc that began in Riazan, which begins in Riazan, south of Moscow, from Riazan to Volgograd. The area is where people are driving (resorts) towards the Black Sea. Associated Press.
Media reports say between August 2 and August 24, Ukraine attacked its oil infrastructure at least 12 times. Of these attacks, at least 10 were targets of Riazan Volgograd Ark in southwestern Russia.
These attacks have destroyed many oil refineries, but have not completely destroyed them, Vakulenko said, adding that most of the facilities are extremely resilient to fires.
But they can slow down their refining activities, as shown by the conversion of crude oil intake to approximately 200,000-250,000 barrels to diesel, gasoline or other products, according to Gary Peach, an oil market analyst at Energy Intelligence.
“That’s enough to feel some pain in their gas industry, especially during the summer months of consumption,” he told the AP. Gasoline production fell 8.6% in the first 19 days of August compared to the previous year, while diesel production fell 10.3%.
Other war-related issues have caused even more consumer pain. Ukrainian drone strikes have repeatedly disrupted Russian transport networks, Especially air trafficmore people will travel by car and increase the demand for gas, Vakulenko said.
He said inflation has also reduced profitability for suppliers who normally buy gasoline for sale during the regular summer months, making many entrepreneurs decide not to plague this year.
Individually, none of these issues caused permanent or widespread confusion in Russia. But together, they turned the expected annual price fluctuations into a government issue.
In an attempt to alleviate the shortage, Russia suspended gasoline exports on July 28th, and the Ministry of Energy hopes to continue restrictions until September. The oil company manager was summoned to a government meeting twice this month to discuss the shortage, Russian media reported.
Moscow is primarily sparing the shortage
Authorities appear to be concerned, but the shortage of gasoline “is not important to the system,” Peach said.
So far, these regions are usually sourced from areas with fewer refineries and are limited to certain regions (Far East and Crimea) due to increased transport demand.
Moscow has escaped the latest gasoline price spikes as it is well sourced from cities that drive away for hours from Yaroslable and Nizhny Novgorod’s major refineries. The capital also has refineries in the city itself.
But Russia doesn’t have the immediate risk of crushing it to a halt, even in more vulnerable regions, experts say. Private drivers may feel pain in the gas pump, but most buses and trucks run on diesel, with Russian surplus. The military, which mainly uses diesel fuel, is also insulated from any shock.
In a recent commentary, Vakulenko wrote that annual diesel production is “more than twice as much as necessary.”
That doesn’t mean that things haven’t gotten worse yet. Refiners that make gasoline for the Russian domestic market make products for diesel and other exports, a key source of revenue amidst Western sanctions.
Industry observers say Ukrainian drones target major refinery equipment, including distillation columns that separate incoming crude oil into other products such as gasoline, diesel, ship fuel and asphalt. If damaged, it must be repaired or replaced for the refinery to function. If foreign parts are required, repairs can be difficult.
The gasoline crisis is expected to be easier by late September as demand settles and summer maintenance for many refineries ends.
Still, the crisis highlights the vulnerabilities of home fronts that could be further exploited as the drone war evolves.
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David McHugh of Frankfurt, Germany and Joanna Kozlowska of London contributed to this report.
