Russian refinery output hits 12‑year low amidst turmoil
Russian refineries are experiencing their lowest production levels since 2012 due to drone attacks and financial problems, reports Reuters. Fuel prices in Russia increased by 11 percent in 2024, the largest rise in 13 years.
Russian refineries are facing serious issues that have led to the lowest production levels since 2012. According to Reuters, in 2024, oil processing will total 267 million metric tonnes, which represents a decrease of 8 million metric tonnes compared to the previous year. The main reasons are drone attacks and shutdowns in key facilities.
Among the most affected refineries are Tuapse, Nizhegorodnefteorgsintez, and Novoshakhtinsk. Downtimes in these plants amounted to approximately 5.5 million metric tonnes, 3.4 million metric tonnes, and 1.5 million metric tonnes, respectively.
The situation may improve
Experts predict the situation may improve in 2025, thanks to better equipment supplies and growing demand for fuel.
Fuel prices in Russia rose by 11 percent in 2024, marking the biggest increase since 2011. Rosstat reports that the average price of gasoline is approximately $0.84 CAD per litre.
In remote regions, such as Sakhalin or Yakutia, prices are even higher. The Kremlin is trying to curb the price increases, but drone attacks and financial issues at refineries are hindering these efforts.
