Skyrocketing petrol costs in Russia caused by strikes on oil processing facilities reaching new peaks
In early August 2025, Ukrainian drone attacks targeted several key Russian oil refineries, causing significant disruptions to the country's oil processing capacity and contributing to a near 10% drop in refinery output [5][2][3].
The most affected refinery was Rosneft's Novokuibyshevsk, which has been completely shut down for at least a month, and the Ryazan refinery, which is operating at about half capacity due to damaged crude distillation units [2][3]. The Afipsky refinery in Krasnodar Krai, important for diesel fuel and aviation kerosene, also suffered from drone attacks, causing fires and damage [1].
These refinery disruptions have led to reduced fuel supplies, particularly impacting gasoline availability in key Russian regions such as Moscow, southwestern Russia, Rostov, and Krasnodar Krai. This supply constraint has resulted in retail gasoline prices in Russia approaching record highs, including the price of AI-95 petrol, a common grade of gasoline in Russia [2].
The Ukrainian drone attacks strategically targeted refineries supplying regions including Moscow and southern Russia, amplifying the local price impact [1][2][3][5]. The refinery in Ryazan has halved its production capacity due to the attacks.
In response to the disruptions, the Russian government has banned oil producers from exporting petrol until 31 August, citing increased seasonal demand and the agricultural fieldwork period [4]. This decision, along with the reduced supply, has caused petrol prices in Russia to surge over the past year, with retail prices rising by 18% [4].
Despite the challenges, the Russian Energy Ministry described the market situation as stable [4]. Repairs for the crude processing units damaged in the attacks are expected to take between one to six months [3].
References:
- BBC News
- Reuters
- The Guardian
- RIA Novosti
- TASS
- The government's decision to ban petroleum exports and the ongoing repairs in affected refineries are projected to have a significant impact on Russia's economy, as the rise in fuel prices could also affect other sectors that rely on petroleum, such as transportation and health services.
- Simultaneously, the surge in fuel prices, caused by the drone attacks on refineries and the government's response, may potentially interfere with the availability and affordability of health care services, sports facilities, and other recreational activities that depend on fuel for operation, thereby affecting the general well-being of the population.
