Russia’s gasoline output set to rise by end-July, ministry says

Russia’s gasoline production is expected to rise by between 15,000 and 20,000 metric tons in the last third of July as two refineries restart operations, the energy ministry said on Friday.

Gasoline exports to “friendly” countries are down 70% from average daily levels in July 2023, the ministry said, despite a ban on exports being waived, while Russia has ample gasoline stockpiles for uninterrupted domestic supply.

The ministry said that two oil refineries located in southern and central parts of Russia were wrapping up their planned maintenance. It did not name the plants.

Industry sources have said that Russia’s No.2 oil producer Lukoil LKOH.MM restarted a key piece of equipment for oil processing, the CDU-6 crude distillation unit, at its NORSI refinery, Russia’s fourth largest, after a drone attack in March.

They also said that Rosneft’s ROSN.MM Tuapse refinery is set to resume crude runs this month.

The ministry also said gasoline stockpiles were at 1.96 million tons, while diesel inventories stood at 3.38 million tons as of early July, up 2% and 8% from the last-year period respectively.

Last week the Russian government decided to continue with unrestricted gasoline exports in July, extending the waiver for a partial ban on overseas fuel sales, as Russia’s domestic plants produce enough oil products to meet peak seasonal demand despite a spate of Ukrainian drone attacks on refineries.
Source: Reuters (Reporting by Vladimir Soldatkin; editing by Jason Neely)