Ukraine’s drone strikes strain Russian fuel market, gasoline grades disappear

Russia is facing shortages of certain fuel grades as Ukrainian drone strikes reduce refinery output and high borrowing costs prevent private filling stations from stockpiling fuel, according to traders and retailers, who spoke to Reuters.

In recent weeks, Ukraine has intensified its drone attacks on Russian energy infrastructure, targeting refineries and export terminals. The strategy aims to cut Moscow’s export revenues, stir discontent at home, and pressure the Kremlin into peace negotiations.

The strikes have at times reduced Russian oil refining capacity by nearly 20% on specific days and disrupted exports from key ports, leaving Moscow close to scaling back oil production. While Russia has a significant surplus of diesel, gasoline output largely matches domestic demand, meaning that any drop in refinery runs risks causing shortages.

Although there are currently no long queues at fuel stations, certain popular gasoline grades such as Ai-92 and Ai-95 are often unavailable. Shortages first emerged in August in the Far East and Crimea and have since spread to the Volga region as well as southern and central parts of Russia, according to multiple sources.

Five traders and retailers in the Russian fuel market, all of whom requested anonymity due to the sensitivity of the matter, confirmed the situation to Reuters.

Gleb Nikitin, governor of the Volga’s Nizhny Novgorod region, wrote on Telegram on September 22 that supply issues were “temporary” and linked to broader regional logistics chains. “Everything should return to normal in the coming days,” he added.

According to the sources, the shortages are hitting privately owned fuel stations the hardest. Unlike filling stations controlled by vertically integrated oil companies, independent operators — who account for around 40% of sales by volume — are not receiving enough gasoline due to reduced refining output. They are also unable to build reserves because of high borrowing costs, with interest rates currently standing at 17%.

Stations owned by Russia’s major oil companies continue to operate largely as usual, the sources said.

“The manager decided to temporarily close the gasoline station because there was no gasoline,” an employee at a filling station in the western Belgorod region explained. “The station in the neighbouring village also closed, and others simply ran out of gasoline,” she added.

While Russia’s economy has so far weathered Western sanctions, it is now showing signs of slowing. Bankruptcies and closures are increasing in sectors such as coal, and exports are declining.

By Tamilla Hasanova