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Record Fuel Prices in Russia as Two Key Refineries Halt Production due to Drone Strikes
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Gasoline prices in Russia have reached historic highs for the second consecutive day, following the suspension of production at two major Rosneft refineries. Despite government attempts to curb the surge with a full ban on fuel exports, prices have continued to climb on the wholesale market, The Moscow Times reported on August 5.
On August 5, the price of AI-95 gasoline on the St. Petersburg Commodity and Raw Materials Exchange reached a historic record for the second consecutive day, rising by 1.2% to 974$ per ton. Similarly, the price of AI-92 gasoline increased by 1.01%, reaching 841$ per ton, just shy of the absolute record set in September 2023 (874$ per ton).
Since the beginning of the year, wholesale gasoline prices have risen by 30%, and this trend is expected to continue. Market sources told Reuters that the market is facing a shortage, partly due to the ongoing attacks by Ukrainian drones on energy infrastructure.
Two major Russian refineries were forced to halt production due to renewed drone strikes on energy facilities. The Novokuybyshevsk Refinery, with a capacity of 8.3 million tons per year, completely stopped its production, while the Ryazan Refinery, the largest in Rosneft and one of Russia's top five, ceased approximately half of its production. Two of the three oil processing units at the Ryazan refinery were damaged, and repairs may take a week or even longer, according to The Moscow Times.
Analysts from Alfa-Bank warn that the sharp rise in wholesale gasoline prices could lead to a further acceleration in retail gasoline prices. Gasoline at gas stations has been steadily rising for six consecutive weeks. In Moscow, the prices for AI-92 and AI-95 have increased by nearly 0,012$ (1 ruble) on average in July and the first week of August, and by 0,034$ (2.72 rubles) and 0,036$ (2.9 rubles) respectively since the beginning of the year, according to the Moscow Fuel Association.
According to Rosstat, annual retail gasoline prices in Russia have increased by more than 11%. This could contribute to an acceleration in the prices of a wide range of goods and services, Alfa-Bank analysts said.
Frequent repairs at refineries, which were targeted by drone attacks last year, have become one of the reasons for the gasoline shortage, along with low stockpiles at private gas stations and issues at airports, which have led to an increased reliance on road transport, sources told Reuters.
The exact volume of fuel produced in Russia remains unclear, as authorities classified official gasoline production statistics in 2024 following drone strikes on refineries. Reuters estimates that last year's oil processing volumes in the country fell to 12-year lows, at 269.9 million tons.
Previously, it was reported that for the third consecutive month, the Russian federal budget has recorded a steep decline in oil and gas revenues, with figures for July 2025 showing a 29.9% year-on-year drop, according to data from the Russian Finance Ministry.
