Russia has initiated the importation of gasoline from India to address a severe fuel shortage in its domestic market. Despite being one of the world`s largest oil producers, Moscow has been forced to take this unprecedented step to mitigate supply issues caused by persistent Ukrainian drone and missile strikes on its energy infrastructure, according to Reuters.
Since the beginning of this year, Ukrainian forces have targeted major Russian oil refineries with over 20 attacks. Reports indicate that at least 8 of Russia`s 10 largest refineries have sustained significant damage. This has resulted in a nearly 17 percent reduction in the country`s gasoline production, falling to approximately 850,000 barrels per day.
Acute fuel shortages have emerged across various time zones in Russia. Long queues have been observed at filling stations, fuel rationing has been implemented in several regions, and gasoline prices have reached record highs. Domestic demand for gasoline in Russia typically peaks during the summer months, requiring at least 110,000 tons of fuel daily, a level that current production cannot meet.
To manage the situation, the Russian parliament recently amended its tax laws. The government has decided to provide subsidies to reduce the cost of importing gasoline from abroad, which will be calculated based on the transport costs from India. The Kremlin stated on Tuesday that discussions with various nations are ongoing to ensure the availability of fuel at acceptable prices for the domestic market, and efforts to procure fuel from alternative sources are underway.
An industry source told Reuters that at least 60,000 metric tons of gasoline have already been dispatched from India to Russia. Two separate tankers, with capacities between 30,000 and 40,000 tons, are currently en route via sea. The specific Indian refinery supplying this fuel has not been disclosed by the authorities.
Another source suggests that Russia plans to import approximately 400,000 tons of gasoline per month from various countries to stabilize the domestic market. The list of suppliers reportedly includes Belarus, which has already been supplying significant quantities of fuel to Russia via rail. Neither the Russian Ministry of Energy nor the Indian Ministry of Petroleum and Natural Gas has commented on these developments.
The development is viewed as a significant irony in the global energy market, given that Russia remains one of the world`s largest oil producers. Russia has long supplied India with discounted crude oil. In June alone, India imported a record volume of approximately 2.7 million barrels of Russian crude oil per day. Now, in a reversal of trade dynamics, that very crude is being refined in India and sold back to Russia as finished gasoline.
