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Russian Gasoline Production Covers Only 70% of Demand

Russian gasoline production has fallen to cover just 70 percent of domestic demand following a wave of Ukrainian drone strikes on refineries.

Russian Gasoline Production Covers Only 70% of Demand

Russian gasoline production fell in August to meet only 70 percent of domestic demand, according to sources cited by Reuters.

By the end of August, daily production dropped to roughly 80,000 tonnes, returning to levels seen in early July during the peak of Russia's initial fuel crisis. Emergency shutdowns at oil refineries following Ukrainian attacks increased the gap between production and market demand to about 35,000 tonnes per day.

Average gasoline output in August stood at approximately 90,000 tonnes per day, covering about 80 percent of the estimated summer demand of 115,000 tonnes daily.

Rising Fuel Imports

To address the shortfall, Russia has increased its imports of oil products. Seaborne shipments from Asia are expected to total about 270,000 tonnes in August, while imports from Belarus are anticipated to reach around 150,000 tonnes.

Traders estimated that Russia had already received approximately 220,000 tonnes of imported gasoline during August. Belarus, an eastern European nation sharing a close economic alliance with Russia, routinely supplies petroleum products across their border during supply disruptions.

Refinery Capacity Drops

The decline in output follows a surge in drone attacks targeting Russian infrastructure. Bloomberg reported that Ukraine carried out at least 21 strikes on Russian oil refineries in August, representing the highest number of attacks in a single month.

Data from EA Analytics, a unit of energy consulting firm Energy Aspects Ltd., showed that crude oil refining volumes in Russia approached their lowest point in more than 20 years. Refineries processed an average of just over 3.8 million barrels of oil per day in August, down from between 5.3 million and 5.5 million barrels daily earlier in the summer.

By late July, Ukraine's campaign of long-range drone strikes had disabled more than 30 percent of Russia's operational refining capacity and 45 percent of its nominal capacity.

Export Restrictions and Supply Cuts

The domestic deficit prompted government intervention to preserve fuel supplies. On July 30, the Russian government decided to extend its existing ban on gasoline and diesel exports for another six months.

The shortage also forced Russia to cut fuel exports to Central Asian states while searching for additional supply sources.

The current disruption follows earlier pressure on Russian fuel markets. According to Reuters estimates, Russian refineries met only about 65 percent of seasonal gasoline demand in early July before output temporarily recovered.

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