Russia Rationing Petrol Despite Crude Production Records

Russia's oil industry is facing a peculiar problem despite being one of the world's top crude producers. The country has been rationing petrol at home due to Ukrainian drone strikes hitting its refineries and disrupting fuel supplies.

The attacks have forced Russia's major refineries, including NORSI and Perm, to suspend operations or reduce output. This has led to a shortage at petrol stations in Moscow and the surrounding region, with long queues returning as limits on fuel sales are reintroduced.

Russia can continue producing huge volumes of crude oil, but its ability to refine that crude into usable fuel is being severely impacted by the attacks. The country's refineries processed about 5.4 million barrels of oil per day in 2024, but recent strikes have reduced output and created a gap between production and refining capacity.

To address the shortage, Russia has resorted to importing finished petrol from India, with at least two cargoes arriving in August alone. This unusual move highlights the difference between crude production and refining capabilities, as Russia can remain a major crude producer while still needing to buy finished fuel if its domestic refining system cannot produce enough petrol.

The impact of the shortage is not limited to petrol pumps, but also shows up in Russia's wider fuel market. The pressure is spreading, with industry sources warning of potential supply chain disruptions and increased prices for consumers.