Russian fuel output maintains its equilibrium
In the week of April 8-14, Russian refineries produced 845.9 thousand tons of gasoline, marking a 12.1% increase over the previous week's production, according to the Ministry of Energy. This increase comes amidst ongoing challenges for Russian gasoline production, particularly in the months of March and April 2025.
Over the past few months, Russian gasoline production has been under pressure due to refinery disruptions and increased domestic demand. Between January and May 2025, Russia produced approximately 18.6 million metric tons of gasoline, with 15.8 million tons consumed domestically and exports up by approximately 25% to about 2.5 million tons.
The increased domestic demand, refinery outages, and rising fuel prices led to the imposition of a temporary ban on gasoline exports from late July through August and September by the Russian government to stabilize the domestic market. Notable refinery disruptions include the shutdown of two key Rosneft refineries—the Novokuybyshevsk Refinery and the Ryazan Refinery—which were damaged by drone attacks, severely limiting gasoline production capacity.
These refinery shutdowns, alongside high domestic fuel demand and sanctions-related delays in obtaining spare parts, have limited refining throughput, contributing to supply shortages and price spikes. Wholesale prices for AI-95 gasoline hit historic highs on the St. Petersburg exchange in early August 2025.
Despite these challenges, Russian refineries have managed to restore gasoline production volumes compared to both monthly and annual figures. Supplies to the domestic market exceeded last year's volumes in April. The Ministry of Energy reported that gasoline and diesel fuel production stabilized in April, and the increase in production was achieved by ensuring timely and stable removal of finished products from the plants.
However, it's important to note that the current retail prices for diesel fuel in the retail market are not specified. The Ministry of Energy did not provide reasons for the reduction in fuel exports in April, and forecasts suggest that Russian gas and fuel production levels may partially recover in the second half of 2025 but are unlikely to fully offset the current constraints due to geopolitical and operational challenges.
References:
- EIA
- Reuters
- Bloomberg
- CNN
The ongoing challenges in the Russian gasoline production industry, such as refinery disruptions and increased domestic demand, have led to a rise in finance-related issues, including the temporary gasoline export ban aimed at stabilizing the domestic market. In the energy sector, the sanctions-related delays in obtaining spare parts and the damage to key refineries like the Novokuybyshevsk Refinery and Ryazan Refinery have limited refining throughput, contributing to supply shortages and price spikes in the finance market.
