Source: Fortune
Summary
Russia is facing a severe fuel shortage due to Ukraine’s drone strikes on oil infrastructure, forcing motorists to wait in long lines for gas. The shortage has led to rationing, price increases, and even fights among frustrated drivers. The crisis is adding strain to Russia’s economy, already hit by high inflation and steep interest rates. The Kremlin has banned exports of gasoline and jet fuel and has even imported gas from India to address the shortage.
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The numbers tell one story.
The fuel shortage has exposed the vulnerability of Russia’s oil infrastructure, with 25% or more of its refining capacity taken offline by Ukrainian drone strikes. The crisis has led to a surge in prices, with some gas stations closing and others rationing fuel. The Kremlin’s response has been to downplay the situation, with Deputy Prime Minister Alexander Novak saying the fuel market was “not easy, but controllable.” Meanwhile, Finance Minister Anton Siluanov has denied the crisis has led to a spike in gasoline prices, despite evidence to the contrary. The situation has led to panic, with some regions declaring fuel is mostly reserved for municipal and emergency services.
The Soviet Union’s ghost is back, and it’s haunting the gas pumps.
Author: Evan Null
