First Russian region halts gasoline sales amid fuel crunch

In the Kuril District, which covers most of the Kuril Islands and is part of Russia’s Sakhalin region, authorities have suspended retail sales of AI-92 gasoline to residents.

“Right now, retail sales of AI-92 gasoline to the public are temporarily suspended — the entire stock is needed for special vehicles,” Konstantin Istomin, head of the Kuril Municipal District, said on Telegram at about 10:00 local time (02:00 MSK) on Monday, August 25.

He added that “after lunch a new batch of gasoline will be unloaded” and promised to announce when sales resume. No further update appeared on his Telegram account for the next 17 hours.

Fuel sales limits took effect in the region on August 20

Since August 20, the Kurils have limited fuel sales to no more than 10 liters per person, The Moscow Times reported.

Since August 17, shortages and long lines at gas stations have been reported in neighboring Primorye. Last week, stations in Zabaykalsky Krai and Russia-annexed Crimea returned to the Soviet-era practice of selling fuel with coupons.

“The fuel crisis hit Russia after at least seven major oil refineries came under drone attacks in August, and five of them — including some of the country’s largest — fully or partially halted production: Novokuybyshevsky, Syzransky, Volgogradsky, Saratovsky and Ryazansky,” the Moscow Times wrote, citing the causes of the crunch.

By the end of summer 2025, roughly 13 percent of Russia’s refining capacity — about 44 million tons a year — was idled, the outlet estimated.

Disruptions to gasoline supplies are expected in Russia in August and September, Reuters reported on August 1, citing fuel market participants.

Gasoline prices in Russia continue to rise despite an export ban, and the threat of shortages could add to the increase in August, the report said. “It will be very difficult in August-September. Local shortages may emerge somewhere. We’ll see something similar to the crises of 2023 and 2021,” one source said, adding that prices could start falling in October as demand eases.

The main reason for the current shortage, according to Reuters’ sources, is that private gas station networks did not build sufficient reserves ahead of peak demand this year, as they had in the past. In winter and spring, when prices are usually lower, they did not stock up because borrowing costs jumped. Another factor that may have lifted gasoline demand, retail market participants said, was frequent flight delays at airports.

Russia’s exact fuel output is unclear. In 2024, after a series of drone strikes on refineries, authorities classified official statistics on gasoline production and later on diesel as well.

Reuters estimates Russia’s refining throughput last year fell to a 12-year low of 269.9 million tons.

Russia’s government has fully banned gasoline exports through the end of August. “The decision was made to maintain stability in the domestic fuel market during the period of high seasonal demand and agricultural field work,” according to a resolution published on July 28.

In late February, authorities extended through August 31 a gasoline export ban for non-producers — traders, fuel depots and small refineries.

In late July, the price of AI-95 gasoline rose to 76,330 rubles ($946) per ton.

That exceeded the 2024 peak (74,416 rubles) and approached the 2023 record (76,876 rubles), when the fuel market saw a price crisis.