Gasoline prices in 12 Russian regions exceed US levels amid fuel crisis

Gasoline prices in 12 Russian regions have risen above those in the United States as a deepening fuel crisis drives up costs and revives Soviet-era fuel rationing in parts of the country.

According to the American Automobile Association, regular gasoline in the US averaged $3.847 per gallon, or $1.0164 per litre, equivalent to 78.32 rubles ($1.01) per litre at the Russian central bank's official exchange rate as of June 29, Caliber.Az reports, citing the Moscow Times.

Rosstat data showed AI-92 prices exceeding 95 rubles per litre in regions including Tuva (97.44 rubles, or $1.26) and Sevastopol (97.95 rubles, or $1.26).

The Moscow Times said actual fuel prices in Crimea were significantly higher than official figures, citing a local Kommersant correspondent who reported prices of up to 199 rubles ($2.57) per litre in Sevastopol and 185–200 rubles ($2.39-$2.58) across Crimea.

Nationwide, gasoline prices rose 1.6% over the past week and 6.7% since the beginning of June, the steepest monthly increase since 2009, according to Rosstat. Annual fuel inflation approached 20%, the highest level in 16 years.

Following strikes on refineries that affected nine of Russia's 10 largest refining plants and cut gasoline production by roughly a quarter, the domestic fuel market has split in two, Reuters reported.

Major oil companies have continued selling fuel at near pre-crisis prices under agreements with the government, while private filling stations have raised prices to as much as 120–140 rubles ($1.53–$1.79) per litre. In the wholesale market, AI-92 was selling for 114–118 rubles ($1.46–$1.51) per litre and AI-95 for 125–128 rubles ($1.60–$1.63) per litre at fuel depots in central Russia.

Vladimir Chernov, Freedom Finance Global expert, said record fuel price growth had become the main inflation risk for the Russian economy, warning that higher transport, logistics, agricultural and fertiliser costs would push up prices for food and everyday consumer goods.

He added that Russia's gasoline imports from India and Kazakhstan would not resolve the fuel shortage. Kazakhstan, for example, is expected to supply 50,000 tonnes of gasoline—less than half of Russia's daily demand of around 110,000 tonnes.

By Bakhtiyar Abbasov