To head off a fuel market collapse, rising prices, and long queues at gas stations, the Russian government is urgently considering importing fuel and offering subsidies to cap retail prices, Reuters said.
Industry sources told Reuters that successful attacks on fuel infrastructure last week reduced Russia’s gasoline output to about 90,000 metric tons per day, roughly 25 percent below the June daily average. Data from analytics firm LSEG and market sources show Russia’s seaborne exports of petroleum products fell about 15 percent in the first half of June to 3.3 million tons compared with the first half of May, driven by unplanned repairs at key refineries.
The supply crisis has already prompted limits on free retail sales, sharp price increases, and long lines at pumps in many regions. Moscow Oblast, normally a major exporter, has been forced to ban exports of its gasoline and aviation fuel.
Russian business daily Vedomosti reported that on June 22,
Deputy Prime Minister Alexander Novak held a closed meeting where importing
fuel was raised as an official market-rescue option for the first time. Two
industry sources told Reuters the Kremlin plans to subsidize imported gasoline
to help hold pump prices down, saying fuel shortages are an especially volatile
issue in Russia and could trigger an uncontrolled surge in overall inflation.