Russia, one of the world’s largest oil producers and exporters, is now rationing gasoline in its own capital.
After months of increasingly successful Ukrainian drone strikes on Russian oil infrastructure, gasoline shortages have emerged in Moscow, forcing major fuel retailers to limit sales while authorities scramble to keep supplies flowing.
The shortages follow repeated attacks on refineries and fuel infrastructure that have steadily chipped away at Russia’s refining system. The latest blow came this week when Ukraine struck Gazprom Neft’s Moscow refinery, a facility that normally supplies up to 40% of the fuel consumed in the Russian capital.
According to Russian media, the Moscow refinery outage, combined with damage at Tatneft’s massive Taneco refinery, has removed roughly 600,000 barrels per day of refining capacity.
Reports from Moscow describe fuel purchase limits at stations operated by Rosneft, Lukoil, Tatneft, and other major retailers. Fuel prices have risen for five consecutive weeks and are increasing at roughly twice the pace of inflation.
The Kremlin is responding with a familiar playbook: lower fuel quality standards, redirect supplies toward priority consumers, and restrict exports.
Russia has already banned gasoline exports through the end of July in an effort to keep more fuel at home.
Russia continues to pump millions of barrels of crude every day. The problem is turning that crude into usable fuels after repeated attacks on refining infrastructure.
For decades, Russia has been an energy superpower, supplying crude oil, gasoline, diesel, and natural gas to customers around the world. Now it is reportedly importing gasoline through western ports from Asia while rationing fuel sales in Moscow.
Ukraine’s drone campaign appears to be exposing just how vulnerable even the world’s biggest energy exporters can be when enough refining capacity goes offline.
By Julianne Geiger for Oilprice.com
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