Moscow, Aug 27 (AP) Fuel shortages have struck various regions in Russia following a series of Ukrainian drone assaults on oil refineries and infrastructure. These attacks have left some gas stations without fuel and driven authorities to implement rationing and sales restrictions, as motorists form long lines.
On the St Petersburg International Mercantile Exchange, the wholesale prices for A-95 gasoline—an optimal octane choice—reached unprecedented levels last week, rocketing to about 50% above the January rates. The demand surge is attributed to both farmers harvesting crops and Russians embarking on summer vacations.
Several regions, particularly the Far East and the Crimea Peninsula—which Moscow illegally annexed from Ukraine in 2014—are experiencing acute fuel shortages, according to Russian media. In the Primorye area near the North Korean border, extensive queues and surging prices of roughly 78 rubles per liter (about USD 3.58 per gallon) have been reported. In this region, where the average monthly salary is approximately USD 1,200, some individuals have taken to selling fuel online at prices as high as 220 rubles per liter (about USD 10.12 per gallon).
In the Kuril Islands' Kurilsky district, shortages of lower-octane A-92 gasoline led officials to cease public sales as of Monday. Meanwhile, in Crimea, a favored tourist spot, certain firms are dispensing fuel solely to those holding coupons or special cards.
Price hikes, common at the end of summer in Russia, have been exacerbated this year by Ukraine's intensified attacks on oil refineries amidst the ongoing 3 1/2-year war. These more concentrated attacks are inflicting significant damage and disrupting production, strategically aligning with peak demand periods.
Ukraine has previously targeted energy facilities, but the recent attacks have been notably effective, with more drones focusing on concentrated groups of targets. Sergey Vakulenko of the Carnegie Russia Eurasia Center cited an "arc of refineries" from Ryazan, south of Moscow, to Volgograd, as key targets. This area is significant due to its role in harvest activities, vacation traffic, and being densely populated.
Between August 2 and August 24, media reports indicate that Ukraine executed over 12 strikes on oil infrastructure, with at least 10 of these affecting the Ryazan-Volgograd stretch in southwest Russia. While these strikes have caused considerable damage to refineries, they haven't been completely demolished due to their robust fire-resilience, according to Vakulenko. However, refinery operations have slowed, decreasing crude oil processing into products like gasoline, impacting intake by about 200,000 to 250,000 barrels daily, said Gary Peach, an oil markets analyst.
"The strain on the gasoline sector is particularly acute during these high-demand summer months," Peach noted. Gasoline output dropped 8.6% in the first 19 days of August compared to last year, while diesel production fell by 10.3%.
Other wartime complications compound consumer woes, with Ukrainian drone attacks disrupting transportation networks, elevating vehicle travel, and thus fuel demand, Vakulenko pointed out.
Moreover, inflation has deterred suppliers from stockpiling gasoline early in the year to sell later at higher summer prices, with many opting out this year, he added.
No single issue has caused extensive disruption across Russia, but together they've escalated what is usually a predictable seasonal price increase into a broader concern for authorities.
In response, Russia paused gasoline exports on July 28, with the Energy Ministry likely to extend restrictions into September. Russian media reported that oil executives have met with the government twice this month over these shortages.
Moscow has largely avoided the fuel shortages due to being well-supplied by major refineries in Yaroslavl and Nizhny Novgorod and its own city refinery.
With experts not foreseeing immediate nationwide disruptions, even in more vulnerable regions, drivers may face elevated prices while diesel-reliant buses, trucks, and military operations continue undisturbed, thanks mainly to surplus diesel availability.
Nonetheless, the situation persists with potential to worsen if Ukraine's drone strategy further exploits these vulnerabilities, particularly at refineries producing for both domestic and export markets amid rigid Western sanctions.
The disruption might subside by late September, coinciding with diminished demand and completion of typical summer refinery maintenance work.
Despite short-term challenges, this crisis underscores possible vulnerabilities within Russia's domestic supply chain that could be further exploited with advancements in drone warfare techniques. (AP) GSP
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