Persistent Ukrainian drone strikes targeting critical oil refineries and energy infrastructure have plunged Russia's domestic fuel production to its lowest levels in two decades, causing widespread shortages, rationing, and long queues at petrol stations across the country.
Russian Fuel Output Collapses Amid Attacks
Data from energy analysts reveals a significant collapse in Russia’s crude processing, which has dropped by 25 percent year-on-year to just 3.95 million barrels per day. This marks the lowest operational volume recorded in over twenty years, with approximately one-third of Russia’s total refining capacity currently offline.
The compounding impact of more than 50 targeted Ukrainian drone attacks on key facilities has created an acute supply deficit, particularly during the peak summer demand season for agriculture and transport. President Vladimir Putin has publicly acknowledged the challenges, noting that problems persist for motorists and businesses, with queues and difficulties finding specific fuel grades.
Emergency Imports and Domestic Fallout
In a striking reversal of typical energy trade dynamics, Russia has resorted to importing refined gasoline from India by sea to alleviate its domestic crisis. India, a major buyer of discounted Russian crude, is now refining the product and exporting it back to Moscow. Initial shipments of at least 60,000 metric tonnes have been dispatched, with more tankers en route.
To facilitate these emergency purchases, the Russian parliament has approved new legislation introducing state budget subsidies for fuel imports, with financial relief calculated based on Indian port delivery costs. Kremlin spokesman Dmitry Peskov confirmed ongoing discussions with foreign partners to stabilize the retail market and curb panic-buying, with plans to secure 400,000 metric tonnes of imported gasoline monthly. Neighboring Belarus has also ramped up its rail exports to Russia.
Rationing and Export Bans Widen
The domestic fallout from the Russian fuel shortages has rapidly expanded, with fuel restrictions now active in over 50 Russian regions, including Siberian hubs like Irkutsk. Local authorities have implemented strict queue-management systems and increased public transit fares to cope with rising energy costs.
In response to the growing crunch, the Russian government has banned gasoline and aviation fuel exports and is considering extending this restriction to diesel. Although Putin stated that national gasoline reserves are only marginally lower than last year, market experts warn that severe distribution bottlenecks are expected to persist for several weeks, hindering efforts to move fuel from storage to points of need.