Russian Gasoline Prices Reach Record Highs Amid Refinery Attacks

Wholesale gasoline prices in Russia have reached unprecedented levels, with AI-92 gasoline climbing 1.33% to 71,516 rubles ($885) per ton and AI-95 increasing 2.19% to 80,430 rubles ($995) per ton on August 18, according to the St. Petersburg International Mercantile Exchange.

The surge follows a series of attacks on major refineries, including Rosneft's Ryazan and Novokuibyshevsk plants, and Lukoil's Volgograd refinery. These incidents have disrupted operations and reduced fuel production capacity.

In response, the Russian government imposed a gasoline export ban on August 1, intended to last until August 31, aiming to stabilize the domestic market. However, industry experts suggest that the ban may not suffice to balance the market, as export volumes are significantly smaller than domestic consumption.

Analysts are divided on the duration of elevated prices. Some anticipate stabilization by October as seasonal demand decreases and refinery repairs conclude, while others warn that shortages could persist, potentially leading to a repeat of past fuel crises.

The government is considering additional measures, such as increasing the minimum quota for exchange-traded gasoline sales or allowing Belarusian fuel into the Russian market, to address the situation.