Several Russian regions reintroduce fuel rationing

Several Russian regions are once again facing fuel shortages after Ukraine resumed near-daily attacks on oil refineries across the country.

Source: Bloomberg

Details: Kaluga Oblast, which borders Moscow Oblast, will introduce a fuel rationing system based on vehicle registration numbers from Saturday.

Astrakhan Oblast, on the Caspian Sea coast, plans to limit fuel sales to 40 litres per vehicle and temporarily restrict operations at a number of urban filling stations.

Earlier this week, Orenburg Oblast introduced a rationing system allowing fuel purchases based on vehicle registration numbers, imposed limits on petrol and diesel purchases per driver at filling stations, and banned the filling of fuel cans.

By early August, regions across Russia had increased fuel purchase limits or even lifted restrictions altogether, while petrol and diesel prices at filling stations had fallen.

The resumption of Ukrainian attacks is once again putting pressure on supplies. Since the beginning of August, Ukraine has attacked 11 of Russia's 34 major oil refineries, most of them linked to the country's largest oil producers.

Several regions significantly closer to Moscow or the Ukrainian border warned of reduced fuel supplies earlier this week.

Russian energy giant Rosneft reduced petrol supply limits to Kostroma Oblast following the 6 August strike on the Yaroslavl oil refinery, one of the largest in Russia.

Voronezh Oblast governor Alexander Gusev also warned this week that fuel supplies were deteriorating.

"There are no indications that it will improve in the near future," he said, adding that the situation was being exacerbated by companies diverting fuel to other parts of the country where shortages were even more severe.

Neighbouring Lipetsk Oblast on Thursday reinstated a rationing system based on vehicle registration numbers at Gazprom, Lukoil, Rosneft and Teboil filling stations.

Background:

• In early August, Russia was hit by a new wave of fuel shortages caused by Ukrainian strikes on oil refineries. A number of regions had already introduced restrictions on fuel sales.
• Orsknefteorgsintez, a medium-sized oil refinery in Orenburg Oblast, halted operations on 11 August after Ukrainian drone strikes damaged its processing units.

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