At the beginning of September, the price of a ton of AI-95, one of the most popular unleaded fuel types in Russia, soared to over 82,000 rubles (approximately 826 euros), reaching record highs, according to data from the Saint Petersburg International Mercantile Exchange.
Since the beginning of summer, social media has been flooded with videos showing lines outside gas stations in the Russian Far East, Crimea—a region annexed by Russia from Kyiv in 2014—and in some southern regions bordering Ukraine due to fuel shortages.
On Wednesday, the newspaper Izvestia reported "supply disruptions" in "more than ten regions" of Russia, one of the world's largest oil producers.
Stricken Refineries
In Moscow, the showcase of Russia, there is no shortage, but due to rising prices, a liter of unleaded AI-95 gasoline costs over 66 rubles (0.67 euros). This price, which is still significantly lower than in many European countries, surprises Russian consumers accustomed to cheap gasoline and low average incomes.
Artem, a Muscovite who preferred not to disclose his last name, has been observing this increase "since the beginning of the year." "For ordinary people, an increase of 300-400 rubles per tank (3-4 euros, ed.) starts to be noticeable," he says.
Igor Yushkov, an analyst from the National Energy Security Fund, notes on Gazeta.ru that the excise tax (an indirect tax) has increased "by about 16%" since January, along with a reduction in subsidies for oil companies.
This is because, as energy expert Sergey Teryoshkin explained to AFP, "the lower the subsidies, the lower the profitability," which pushes oil companies to "pass on" these losses to retail prices.
Demand has increased due to vacations and agricultural machinery.
Above all, there are the strikes on refineries and oil depots that Ukraine has intensified to hit Moscow's wallet and hinder its funding for the ongoing offensive.
"Strikes have been carried out against major refineries in the European part of Russia," particularly in the Samara, Ryazan, Volgograd, and Rostov regions, reports Alexander Kots, a military-themed journalist on Telegram.
"Nothing!"
According to the Ukrainian General Staff, one such attack in mid-August targeted the Syzran refinery in the Samara region. The facility is located over 800 km from the Ukrainian border. Kyiv positions it as "vital in the Rosneft system," the Russian hydrocarbon giant.
Moscow has not assessed the scale of the consequences of these strikes; however, analyst Maxim Dyachenko in the newspaper Kommersant speaks of a production decline of "almost 10%" since the beginning of the year.
"This is nothing!" says Moscow businessman Alexander, filling his German sedan's tank. "One sip, two sips, three sips—this is nothing for the market as a whole or for prices."
"The country needs money. An increase in gasoline prices is a way to boost state revenues," says Vladimir, a 50-year-old Muscovite.
In an effort to stabilize the situation, Moscow has extended the ban on "exporting automotive gasoline" until the end of October.
Russia also remains a significant exporter of crude oil, whose export the West aims to choke off to dry up one of the main sources of funding for Russia's offensive in Ukraine—a country that sees the European Union as its main ally.
Source: France24
