Following strikes on oil refineries in Russia, petrol is being diverted from regions to Moscow amid new fuel shortage, - Reuters
Against the backdrop of a new wave of petrol shortages, the Russian authorities have begun diverting fuel from regions across the Russian Federation to Moscow. Priority is being given to supplying the capital following a series of strikes on Russian oil refineries, which caused at least four major refineries to shut down or scale back operations in August.
According to Censor.NET, Reuters reports this.
Petrol from the regions is being channelled to Moscow
According to Reuters industry sources, attempts are being made to make up for the fuel shortage in the Moscow region by reallocating supplies from eastern Russia. This is happening despite the fact that the shortage is once again spreading to other parts of the country.
According to the agency’s estimates, following the August strikes on oil refineries, at least ten regions of the Russian Federation have reintroduced restrictions at petrol stations. These include the Orenburg, Lipetsk and Kaluga regions, the latter of which neighbours the Moscow region.
Moscow accounts for around 14 per cent of all passenger cars in the Russian Federation and 19 per cent of road freight transport.
At the same time, one of the key suppliers of fuel to the capital – Gazprom Neft’s Moscow refinery in Kapotnya – was struck twice in June. According to the Financial Times, the plant, which supplied around a third of Moscow’s fuel requirements, has managed to resume operations, but is currently operating at around a third of its capacity.
Problems also arose at the Ryazan Oil Refinery – one of the three largest in Russia. Following the strike on 29 July, the refinery halted fuel production, and Reuters sources estimated that repairs would take two to three weeks.
Oil refining remains 30 per cent below the seasonal average
In July, oil refining volumes in Russia fell to 3.5 million barrels per day – the lowest level in around two decades. By early August, the figure had recovered to just over 4 million barrels, although, according to estimates by analysts at Rystad Energy, this is still around 30 per cent below the seasonal average.
A source in the fuel market cited by *Kommersant* believes that Russian companies will not be able to return to processing 5.5 million barrels per day by the end of the year. What is more, refinery utilisation rates could fall to new lows in August.
The shortage may worsen in early autumn
Further challenges for the Russian fuel market are expected in September. The Novopolotsk Oil Refinery in Belarus – one of two Belarusian refineries supplying fuel to Russia – is due to shut down for scheduled maintenance. In July alone, these refineries supplied 212,000 tonnes of petrol and 162,000 tonnes of diesel to the Russian market.
Renovations are also planned at a number of large Russian enterprises.
Independent fuel expert Maxim Khudalov predicts that the next wave of shortages could hit the Urals particularly hard.
"Apart from the attacks themselves, there is also the factor of prioritising supplies to the capital," he explained.
