Gasoline prices in Russia hit historic highs: Market shakes after drone attacks

[Starmix]

According to the report, Russia's domestic fuel market has collapsed into crisis: after a series of drone strikes on oil refineries, wholesale gasoline prices reached previously unseen levels. Russian media reported this. According to the Saint Petersburg Commodity and Raw Materials Exchange, on Monday, a ton of AI-92 gasoline cost 71.5 thousand rubles, and AI-95 - 80.43 thousand. Over the past day, the cost has grown by 1.33% and 2.2%, respectively, and since the beginning of the year, the growth has amounted to 38% and 49%.To try to contain the rise in prices, the Russian government announced a complete ban on gasoline exports until the end of August, later extending it until the end of September. However, experts estimate that export volumes are too small to affect the market. Russia is again at risk of facing a fuel shortage. Since the beginning of August, three refineries have been shut down in the country: Rosneft's Novokuibyshevsk and Saratov refineries, as well as Lukoil's Volgograd refinery, the largest in southern Russia and one of the country's top ten. The combined capacity of these enterprises is 29.8 million tons per year, which is about 11% of the total refining volume. Last year, according to Reuters calculations, Russia processed 267 million tons of oil.

In addition, Rosneft's largest asset, the Ryazan Oil Refinery, which supplied Moscow and the region, among other places, lost half of its capacity. The Syzran, Slavyansk, and Afipsky refineries also came under attack. Oil and gas market analyst Mikhail Krutikhin explained that the rise in prices is explained not only by the shutdown of enterprises due to UAVs. " We have very tricky prices for gasoline in the Russian Federation... 75% of the price is taxes. This is not the cost of oil, which is only about 7%, not refining, and not transportation. These are taxes. They are raised twice a year, so prices will continue to rise... Apparently, the export ban has somewhat curbed the growth of prices, but not dramatically. The main factor in the growth is the greed of the Russian government," the expert said. Thus, drone strikes on Russian oil refining have only accelerated the crisis processes, and structural problems in the economy and tax system are making the situation on the fuel market even more difficult.