NewsDrone strikes on refineries plunge Russia's gasoline production

Drone strikes on refineries plunge Russia's gasoline production

The decline is "clear". Billions of rubles are going up in smoke.
The decline is "clear". Billions of rubles are going up in smoke.
Images source: © TG
10:52 AM EDT, March 28, 2024

Russia has seen a significant drop in gasoline production following a series of Ukrainian drone attacks that disrupted operations at major oil refineries, including Rosneft and Lukoil, according to The Moscow Times. Last week, Rosstat reported that the country's fuel production plummeted by 7.4 percent.

This decrease is easily noticeable. Just a week earlier, Russia produced roughly 899,000 short tons of gasoline; between March 4 and March 10, around 926,000 short tons were produced. Over three weeks, the economy suffered a 10.1 percent loss in gasoline production. During the same timeframe, diesel oil production decreased 3.9 percent, amounting to approximately 1.816 million short tons.

Drones strike Russian refineries

Reuters has estimated that 14 percent of Russia's primary oil refining capabilities are offline, with nearly 10 percent affecting the production of gasoline and diesel oil for domestic consumption.

On March 13, an unmanned aerial vehicle struck the largest Rosneft refinery in Ryazan, which supplies fuel to Moscow and the surrounding area.

The resulting fire caused two production blocks to cease, leading to a one-third cut in gasoline production (around 3,643 short tons per day) and more than a half reduction in diesel oil production (approximately 6,393 short tons per day).

A UAV attack on March 16 targeted the only operational oil refining unit at the Syzran refinery. Additionally, one of the two refining units was shut down over the last weekend at the Rosneft Kuibyshev Oil Refinery.

Shortages could be serious

According to Reuters sources, Russia has initiated talks with Belarus about importing gasoline in response to potential fuel shortages. These discussions involve possibly ramping up oil deliveries to Belarusian refineries Naftan and Mozyr, each with a production capacity of about 13.2 million short tons annually.

One of the sources informed Reuters, "There are plans to source fuel from these plants for the Russian market, but the negotiations are not proceeding smoothly."

Given the ever-changing situation in the Russian fuel market and the ongoing occurrence of refinery fires, it remains uncertain how much Belarusian gasoline will be required. "If repairs can be expedited, the impact of fuel shortages will be minimal," a source from a major oil company told Reuters.

Following mishaps at key refineries since March 11, wholesale market prices for Pb-92 gasoline rose by 13 percent, Pb-95 by 8 percent, and diesel oil by 11.9 percent.

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