... costs incurred due to prolonged downtime at refineries," Tereshkin said. He explained that most Russian refineries are part of vertically integrated companies that operate under cross-subsidization schemes. For instance, part of the revenue from oil exports has often been used to modernize refineries since the 2010s. From a business perspective, it would be beneficial for these companies to temporarily reduce processing volumes and redirect some crude oil to the external market, the expert added. "This effect was observed in the ...

... to just 0.8% from March 5 to May 6. Diesel fuel prices also accelerated, with growth rates increasing from 0.9% to 1.3%, according to Rosstat. Unspoken Market Constraints Oil companies have incentives to raise retail prices. On one hand, Russian refineries, most of which are part of vertically integrated oil companies (VIOCs), face rising costs. Rosstat data shows that the net profit of Russian enterprises across the economy grew by 13.8% in the first four months of 2024 to 10.05 trillion rubles. However, in petroleum product manufacturing, profits declined ...

... AI-95, though it accounts for only about 40% of exchange sales. Gusev highlights the need to separate AI-92 and AI-95 in regulatory mandates, as current rules combine all grades, leading to disparities. According to Sergey Tereshkin, CEO of the Open Oil Market platform, the faster price growth for AI-98 and above is tied to infrastructure damage at refineries, specifically to high-octane fuel production facilities. Sanctions on equipment imports mean it will take a long time to address this issue. As a result, annual price growth for gasoline in 2024 is expected to exceed inflation rates, even with ...

... International Mercantile Exchange, the price of AI-92 gasoline in the European part of the country fell to 59,356 rubles per ton, the lowest level in a month. The price reduction is linked to a seasonal decline in demand, the completion of repairs at oil refineries, and the ongoing ban on gasoline exports. Experts predict that this trend will continue in the coming months. Wholesale gasoline prices in Russia began to decline in October, according to data from trading on the St. Petersburg International ...

... impose a temporary export ban and return to previous rules. This year, the crisis is linked to the risk of fuel shortages and the long-term impact of sanctions, which was not as noticeable in 2022-2023: due to restrictions on equipment supplies for refineries, oil producers have no ability to quickly ramp up product output. Technological problems are compounded by the gradual depletion of the budget's safety cushion. The federal budget deficit for January-October 2024 was 220 billion rubles, and by the end ...