Reuters: Oil producing giant Russia suffers from fuel shortage – Economy

According to Reuters, the Russian government has even considered restrictions on the export of gasoline and diesel to prevent a serious fuel crisis.

World Russia, one of the largest oil producers, has suffered from a fuel shortage in the southern part of the country during the agricultural harvest season, reports news agency Reuters.

According to Reuters sources, the fuel shortage may only worsen in the coming months. The shortage is the result of maintenance shutdowns at many oil refineries and the weak transportation infrastructure of the railways.

In addition, the weak ruble has encouraged Russian refineries to export even more fuel abroad instead of selling it on the domestic market.

According to Reuters, the Russian authorities have been trying to deal with the gasoline and diesel shortage in recent months. The government has even considered export restrictions as an attempt to prevent a serious fuel crisis.

A worsening of the fuel shortage would be embarrassing for the Russian administration, as the presidential elections are in March next year.

However, the government has decided to reduce subsidies to refineries. The decision may reduce fuel production at refineries.

Reuters says that the wholesale warehouses of petroleum products in the south of Russia have reduced or even stopped fuel deliveries. According to the news agency, gas stations have also had to limit the sale of fuel to retail customers.

There has been a fuel shortage at least in the Krasnodar region, Adygeia and Astrakhan, as well as the Samara region, Reuters sources say.

Farmers in particular have complained about the lack of fuel, but autumn sowing is not threatened. As a result of the fuel shortage, wholesale prices have risen sharply, up to tens of percent.

Russian deputy prime minister Alexander Novak commented to the press on Wednesday that there is no shortage of fuel in Russia.

Novak still said that the government is planning measures to increase the stable supply of fuel. These would include increasing the mandatory sale of fuel to fuel exchanges and limiting the number of people taking fuel.

In Russia, it is estimated that the fuel situation will improve in October at the earliest. Then the maintenance shutdown of many oil refineries will end and the seasonal demand for fuel will decrease.

Earlier in August, the Russian Ministry of Energy recommended in its announcement that oil companies find ways to curb the rise in wholesale fuel prices in agricultural areas.

According to the ministry, there have been some supply disruptions in the southern parts of Russia due to railway congestion. Congestion has been caused by traffic during the tourist season.

The Russian railway company has said that it is negotiating with oil refiners to resolve the congestion situation.

By Editor

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