Russian oil refining hits 20-year low in August 2026 due to refinery strikes

OIL AND GAS 29.08.2026 / author:
Russian oil refining hits 20-year low in August 2026 due to refinery strikes

Fuel rationing has been introduced across Russian regions, with independent gas station prices exceeding 100 rubles

Throughout August 2026, Ukrainian forces conducted at least 21 strikes against Russian oil refining infrastructure. These attacks have pushed oil processing volumes to their lowest levels in over two decades, triggering a significant fuel shortage. This was reported by Delo.ua citing Bloomberg, according to the portal PromPolitInform.

In August, Russian facilities processed an average of just over 3.8 million barrels of oil per day. For comparison, during a typical summer period, this figure usually ranges between 5.3 and 5.5 million barrels per day.

The sharp decline in output caused gasoline and diesel shortages across the Russian domestic market. Production and supply of automotive fuel fell by nearly 20% year-on-year in the first three weeks of August. While diesel production dropped by more than 23%, domestic diesel supplies saw a reduction of only 3% due to the existing export ban.

Impact on Russian regions

The fuel crisis has affected more than 50 million consumers across dozens of Russian regions, spanning areas from the Baltic Sea to Siberia. Many provinces have implemented fuel rationing, and residents in Moscow have reported long queues of 30 to 50 vehicles at filling stations.

At independent gas stations, gasoline prices have climbed above 100 rubles (approximately $1.20) per liter, while stations run by major oil companies keep prices below 80 rubles. Despite the shortages, motorists are increasingly reluctant to pay these inflated prices.

Government forecasts and response

Analysts at EA Analytics expect processing volumes to recover slightly to 4.2 million barrels per day in September. However, the risk of further declines remains high should the ZSU continue their strikes against critical infrastructure.

Amidst the fuel shortage, the Russian government has extended its ban on the export of most types of gasoline until the end of January 2027. Officials are also currently discussing the possibility of extending the diesel export ban as the infrastructure remains under continuous pressure from the ongoing conflict.

Photo: Delo.ua

Read also: Strikes on refineries cut Russian gasoline production by 20%