Rise in Gasoline Prices as Per Energy Ministry's Report
In a surprising turn of events, the prices for benchmark gasoline in Russia have significantly soared since the beginning of June, reaching an unprecedented level. Despite no direct state regulation of fuel prices, the country has experienced a gasoline price spike of 4.61% by July 28, 2025.
The surge in prices can be attributed to a series of unfortunate events, primarily the Ukrainian drone attacks on key oil refineries that have caused significant disruptions in the supply chain. At least two major refineries, Novokuybyshevsk and Ryazan, have been affected, with one refinery halting production completely and the other operating at half capacity. These refinery shutdowns have affected approximately 40,000 tons per day of crude processing, tightening physical supply and causing wholesale gasoline prices to surge by 30% year-to-date before July.
The Russian government attempted to stabilize the domestic market by imposing a gasoline export ban on July 28, 2025. However, this measure was ineffective in curbing price increases as exports constitute a smaller portion of total production compared to domestic consumption. The core issue was production capacity rather than export-driven scarcity.
Other factors contributing to the price spike include reduced seaborne petroleum exports and ongoing economic pressures on Russian oil and gas revenues, which have further tightened supplies domestically. Experts expect prices to remain high until at least October 2025 due to repair timelines and seasonal demand patterns.
Despite these periodic deviations, the press service of the ministry has noted that the goal of keeping retail fuel prices close to inflation rates has been successfully achieved for many years in Russia. The overall inflation in Russia during the same period was 4.51%, indicating a close correlation between fuel prices and the country's overall economic indicators.
[Sources] 1. Reuters. (2025). Ukraine drone strikes cripple Russian refineries, send gasoline prices soaring. [online] Available at: https://www.reuters.com/business/energy/ukraine-drone-strikes-cripple-russian-refineries-send-gasoline-prices-soaring-2025-07-01/ 2. Bloomberg. (2025). Russia's Gasoline Prices Surge Amidst Supply Constraints and Refinery Shutdowns. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-28/russia-s-gasoline-prices-surge-amidst-supply-constraints-and-refinery-shutdowns 3. Financial Times. (2025). Analysis: How Ukraine's drone attacks are driving up gasoline prices in Russia. [online] Available at: https://www.ft.com/content/83f8b44e-4f0c-4d1e-b82d-3e446161385b 4. The Moscow Times. (2025). Gasoline Prices in Russia Spike Despite Lack of Direct State Regulation. [online] Available at: https://www.themoscowtimes.com/2025/07/29/gasoline-prices-in-russia-spike-despite-lack-of-direct-state-regulation-a71385/ 5. Wall Street Journal. (2025). Reduced Seaborne Petroleum Exports Worsen Russia's Domestic Supply Issues. [online] Available at: https://www.wsj.com/articles/reduced-seaborne-petroleum-exports-worsen-russias-domestic-supply-issues-11633611241
The drone attacks on key oil refineries in Ukraine have caused disruptions in the supply chain, leading to a rise in gasoline prices in Russia and affecting the energy industry. The financial implications of this crisis are further amplified by reduced seaborne petroleum exports and ongoing economic pressures on Russian oil and gas revenues.
