Photo courtesy of Anadolu
Russia’s fuel shortage has worsened economic challenges as the country faces slower growth, high borrowing costs, and weaker domestic demand amid the war in Ukraine.
Rising gasoline and diesel prices have increased production and transport expenses, forcing the central bank to take a more cautious approach on interest rate cuts.
More than 40 regions had imposed fuel-saving measures, while Moscow restricted fuel exports to boost domestic supply after refinery disruptions, rising summer demand, and changes in delivery routes.
Deputy Prime Minister Alexander Novak had blamed the shortage on refinery shutdowns caused by Ukrainian drone attacks and shifting fuel distribution patterns.
Russia’s statistics agency Rosstat reported gasoline prices rose 13.9% and diesel prices 14.7% from January to July 6, adding pressure on inflation.
The central bank warned higher fuel costs could continue driving up prices across sectors, including agriculture, retail, construction, and transportation.
Russia’s economy was estimated to have grown 0.5% in the first half of the year, with expansion largely supported by state-backed industries as private businesses struggled with weak demand and expensive credit.
The International Energy Agency said reduced Russian fuel exports had affected global markets, while Moscow continued efforts to stabilize domestic supplies.
President Vladimir Putin said Russia’s energy system remained resilient and that fuel-related difficulties would be temporary, while officials said recovery would depend on supply conditions, export restrictions, and financing costs.
