Russia's independent fuel stations push prices above 100 roubles for first time

Independent fuel stations across Russia have begun selling gasoline and diesel for more than 100 roubles ($1.27) per litre for the first time, as fuel shortages linked to Ukrainian attacks on oil refineries continue to drive record increases in wholesale prices, sources at retail fuel chains told Reuters.

The milestone comes after weeks of mounting supply pressures. Industry sources said independent retailers had approached the 100-rouble threshold two weeks earlier but delayed raising prices because their forecourt display systems were not configured to show three-digit prices.

By the end of June, however, worsening market conditions forced the stations to update their systems, allowing them to sell gasoline and diesel at prices ranging from 120 ($1.52) to 140 roubles ($1.78) per litre, the sources said.

The fuel shortages have intensified following Ukrainian drone strikes on Russian energy infrastructure, prompting restrictions on fuel sales across much of the country. The most severe measures have been reported in southern Russia, Siberia and Russian-occupied areas of Ukraine.

In contrast, prices at filling stations operated by Russia's vertically integrated oil companies have remained largely unchanged. AI-92 gasoline is selling for around 63-66 roubles ($0.80-$0.84) per litre, while AI-95 costs about 70-73 roubles ($0.89-$0.93).

Traders said these companies are adhering to an informal agreement with Russian regulators to keep fuel price increases in line with inflation.

The price gap has led motorists to flock to lower-priced oil company stations, causing fuel supplies to sell out quickly and forcing some outlets to suspend operations until new deliveries arrive.

On June 28, Russian President Vladimir Putin acknowledged that Ukraine's drone campaign had contributed to fuel shortages but said authorities were addressing the problem.

According to industry estimates, Russia's gasoline production has remained below domestic consumption since May, while diesel output has been roughly equal to demand.

Industry sources said demand in the wholesale market now significantly exceeds supply, with many purchase orders going unfilled.

Trading volumes of AI-92 gasoline and diesel on the St. Petersburg International Mercantile Exchange (SPIMEX) have fallen to less than half of their June 2025 levels, while AI-95 trading volumes have declined by about one-third, the sources said.

Supply constraints have been worsened by delivery delays, with sellers regularly postponing shipments and waiting times of one to two months becoming common, according to exchange participants.

Traders said immediate fuel supplies are now available only at depots holding wholesale volumes purchased earlier on SPIMEX or stocks accumulated during the winter. They added that the price of these small wholesale lots, available for immediate loading into road tankers, is about twice the average wholesale price on the exchange.

By Sabina Mammadli