Russia's gasoline crunch is escalating, with at least two-thirds of the country's regions now grappling with fuel rationing or supply disruptions. This widespread issue stems from continuous Ukrainian drone attacks on Russian refineries, impacting areas from those bordering Ukraine to the Amur region near China. Regional governors are limiting sales at filling stations and trying to prevent panic buying, with the scale of disruptions intensifying daily and threatening to worsen if drone strikes continue to increase.
Average retail gasoline prices in Russia surged by 1% to 69.11 rubles ($0.95) per liter between June 9-15, marking the largest weekly jump since early January. This price increase, coupled with limited sales at some filling stations, is causing significant hurdles for drivers, particularly during the summer vacation season. The Moscow Oil Refinery, responsible for 40% of the Moscow fuel market, had its operations halted by a drone strike last week, further exacerbating the crisis.
In response to the fuel shortages, Russia's parliament approved amendments to the Tax Code on June 24. These changes aim to stabilize the domestic market by allowing the use of poorer-quality fuel in blending and delaying certain refinery equipment modernization while preserving tax benefits. Deputy Finance Minister Alexei Sazanov stated that the law is crucial for increasing the supply of motor fuel through both domestic production and imports. Additionally, authorities are considering subsidies for imported fuel, pegged to Indian delivery costs and prices, and a potential ban on diesel exports. Gasoline output has already dropped by approximately 25% compared to June 2025 levels, to about 90,000 metric tons a day.
At least 15 Russian regions had introduced restrictions on fuel sales by June 23, with some measures including limits on liters per purchase and restrictions on jerrycans. While some officials attributed these to "logistical issues," the underlying cause is acknowledged to be Ukrainian drone attacks on oil refineries. These attacks, viewed by Ukraine as legitimate military targets, have also led to an estimated 15% decrease in Russia's seaborne oil product exports during the first half of June compared to the first half of May, due to unplanned refinery maintenance.
