Russia faces mass closures of private petrol stations amid fuel shortage
Russia's petrol stations are currently operating at a loss on gasoline sales, prompting the closure of several independent outlets.
Source: Russian state media Interfax, citing an official letter of the Russian Fuel Union to Russian Deputy Prime Minister Alexander Novak
Details: The Russian Fuel Union (RFU) highlights two main issues in the petrol sector.
The primary factor is falling production and reduced exchange sales, which have pushed wholesale prices up, equaling or in some regions exceeding retail prices.
Another major issue is that delivery deadlines for exchange-traded petrol are repeatedly missed.
The union notes that some regions already experience prolonged supply disruptions, and negative retail margins combined with product shortages have led to the closure of certain private petrol chains.
If the trend continues, it could threaten independent station owners, who make up around 60% of all petrol stations in the country.
The RFU emphasises that measures to ban petrol exports have done little to improve the situation.
While diesel fuel is less affected, falling exchange sales and longer delivery times have disrupted supply and demand balance, pushed up wholesale prices and left retail sales with zero profitability.
Background:
- A total of 20 regions of Russia and temporarily occupied territories of Ukraine are experiencing fuel shortages after Ukrainian drone strikes targeted Russian refineries.
- Since 24 September, all grades of petrol, including the most expensive A100, have completely disappeared from petrol stations in annexed Crimea.
- By late last week, the number of petrol stations in Russia affected by supply disruptions had dropped by 2.6% – or 360 stations – since late July. In some regions, the problem has become more widespread.
- A fuel shortage has led to restrictions on petrol sales in the Russian-occupied city of Sevastopol in Crimea as of 29 September.
- The Russian government has extended the temporary ban on petrol exports and imposed restrictions on other types of fuel until the end of 2025.
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