To solve the problem of gasoline shortages and rising prices, it is necessary to boost investment in the modernization of oil refineries and develop infrastructure, in particular by expanding the network of fuel storage facilities in the regions.
This was stated to Nezavisimaya Gazeta by Antonina Levashenko, Head of the laboratory for analysis of best international practices at the Gaidar Institute.
"In Russia, refinery capacity has not grown since 2022, with average processing remaining at 6.7 mn barrels per day, according to The Energy Institute. At the same time, demand for fuel oil products is growing steadily by 2–3% annually. In the summer, demand usually reaches its highest level when there is more car traffic in the country. As a result, Russia's current oil refining volumes were unable to sufficiently satisfy market demand in the summer, and gasoline shortages occurred in some regions. This ultimately led to price increases for certain grades of gasoline on the exchange," the expert commented.
Among the factors influencing the situation, Antonina Levashenko highlighted scheduled and preventive maintenance work at refineries, sanctions that hinder plant modernization, and drone attacks that lead to emergency repairs. In addition, the expert noted a reduction in rail deliveries of petroleum products, which also creates a shortage in the regions.
In this regard, according to the expert, it is necessary to “increase investment by oil companies to modernize refineries and commission new production/processing capacities, including complex facilities with other drilling mechanisms that are considered unprofitable, as well as accelerate the import substitution of equipment, which can also be achieved by reducing the tax burden on oil companies.”
Levashenko also emphasized the importance of “developing infrastructure for refineries, such as expanding the network of fuel storage facilities in the regions, which can be achieved by strengthening requirements for regional gas stations to ensure the operation of such facilities. This will ensure fuel reserves in the regions for emergencies and reduce dependence on rail deliveries.”