EXCLUSIVE-Russia’s gasoline output covers 65% of demand after Ukrainian strikes, sources say

Russian gasoline output has plummeted to 65% of its seasonal average due to Ukrainian drone attacks on major oil refineries, exacerbating fuel shortages and public order issues.

Russian gasoline output fell to a ‌level equivalent ​to only around 65% of the seasonal average consumption after Ukrainian drone attacks led to stoppages at large oil refineries, according to two industry sources and Reuters calculations. Ukraine has intensified its attacks on Russia’s energy infrastructure, including large oil refineries, to ‌try to undermine Moscow’s war efforts.

As fuel has run short and drivers are queuing to fill their vehicles, Cossacks, who have in recent years been used to back up police, have helped to maintain public order at some filling stations. Damage has caused operations to be halted at many oil refineries, including NORSI and Omsk, the two largest producers of ‌gasoline in the country. Another large gasoline producer, the Saratov refinery, was also forced to stop production, industry sources said.

The sources, who could not be named ‌because they were not authorised to speak publicly, said gasoline production had fallen short of the amount needed at this time of year, when summer weather increases driving demand, by between 40,000 and 45,000 metric tons per day, or around 35%. In June, the daily shortfall was 25%.

Daily gasoline demand in Russia is around 115,000 to 120,000 tons during peak summer consumption, the sources said. The Russian energy ministry did ⁠not reply ​to a request for comment.

GOVERNMENT ACTION TO TACKLE ⁠SHORTAGES Government proposals to tackle fuel shortages, include bans on exports of diesel, gasoline and jet fuel.

Russia has also started importing fuel. Supplies of gasoline and diesel from Belarus to Russia hit a monthly ⁠record in June, while industry sources said last week that Russia had started seaborne imports of gasoline from India. Traders said that up to 6,000 tons of gasoline per day are delivered ​from neighbouring Belarus to Russia. Stockpiles are also being tapped.

Deputy Prime Minister Alexander Novak told a televised government meeting on Wednesday that the fuel situation ⁠remained complex and that "it is clear that the current situation at filling stations is causing concern among the public". There are long queues at some filling stations in a number of Russian regions. In the Black Sea ⁠resort ​of Anapa, Cossacks have helped to keep order.

Wearing a white shirt and a black fur hat, Yuri Komarov said he was trying to make sure people filled up their cars as efficiently as possible. "It's to avoid chaos and ensure that drivers are dispersed among the petrol pumps in a normal way," Komarov told ⁠Reuters.

He said that people had changed their buying habits since news of the shortages had broken, which was unhelpful. "You see, before people used to come to a ⁠petrol station and get 10 litres (2.64 gallons), ⁠but now they fill up the whole tank, just in case. I think that's the reason for this hype. There is no other way one to explain it," he said.

Industry sources said the situation on the fuel market should improve in ‌the second half of July – ‌bar any new attacks on oil refineries – as refineries resume operations and fuel imports increase. (Reporting ​by Reuters; editing by Barbara Lewis)