Ukrainian Drone Attacks Disrupt Refinery Operations, Driving Russian Gasoline Prices to Historic Peaks | World | london-news-net.preview-domain.com

Ukrainian Drone Attacks Disrupt Refinery Operations, Driving Russian Gasoline Prices to Historic Peaks

Ukrainian Drone Attacks Disrupt Refinery Operations, Driving Russian Gasoline Prices to Historic Peaks

Wholesale gasoline prices in Russia have surged to unprecedented levels following a series of Ukrainian drone attacks that incapacitated several key oil refineries, raising alarm over possible fuel shortages nationwide.

On Monday, the benchmark price for AI-92 gasoline on the St. Petersburg International Mercantile Exchange reached 71,500 rubles (approximately $890), while AI-95 rose to 80,430 rubles (around $1,000) per ton. These increases mark daily rises of 1.3% and 2.2%, respectively.

Since the beginning of the year, the price of AI-92 has soared by 38%, whereas AI-95 has increased by nearly 49%.

This price surge follows attacks that disrupted operations at three significant refineries this month: Rosneft’s Novokuybyshevsk facility on August 2, its Saratov refinery on August 11, and Lukoil’s Volgograd plant — the largest in southern Russia and among the top ten producers nationwide — on August 14.

These shut-down refineries represent nearly 30 million tons of annual refining capacity, making up about 11% of Russia’s total production for 2023, as reported by Reuters.

Additionally, Rosneft’s largest refinery located in Ryazan has had to halt half of its operations since August 2, and further strikes have targeted the Syzran, Slavyansk, and Afipsky refineries.

In response to the crisis, the Kremlin has imposed a temporary ban on gasoline exports until the end of August, which has since been extended through September.

Experts suggest that this measure might not significantly alleviate the situation, given that Russia exports relatively little gasoline. The more pressing concern, sources told Reuters, is the risk of a widespread domestic fuel shortage.

Evidence of difficulties is already visible at gas stations. In annexed Crimea, AI-95 has largely vanished from most stations, with remaining supplies being distributed primarily via ration cards. The fuel has completely disappeared in the towns of Krasnokamensk and Borzya in the Zabaikalsky region.

Additionally, gas stations in at least two other regions have begun to limit sales to businesses and organizations.

The Energy Ministry has attempted to reassure citizens, stating on August 13 that fuel supplies remain stable and logistics are unaffected. They noted that any shortfall is being compensated by increased production at other refineries.

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