All articles tagged with #refineries
President Trump, visiting Ireland, urged Ukraine to stop strikes on Russian oil refineries to curb a global surge in diesel prices, arguing the shortage stems from the Russia–Ukraine conflict rather than the Iran policy; a senior European official suggested the administration is scapegoating Kyiv ahead of the Nov. 3 U.S. midterm elections, while noting any energy ceasefire must be mutual.
Trump’s push to reopen shuttered refineries and expand capacity isn’t expected to meaningfully lower current gas prices. Building or expanding refineries would take years to come online, and global refinery constraints—exacerbated by wars and supply disruptions in Russia, the Middle East, and Iran—keep prices high. Refiners are earning record margins, and oil companies are channeling windfall profits into exploration, pipelines, or shareholder returns rather than rapid refinery expansion, so the near-term price relief remains unlikely.
Diesel prices topped $6 a gallon nationwide, with California near $8, as war-related refinery outages from Ukraine and Iran tighten supply. Analysts warn diesel is the economy’s “silent killer” because higher freight and farming fuel costs ripple into prices for food, goods, and energy. With U.S. refineries operating near capacity and millions of barrels per day of capacity lost, diesel supply has tightened even as crude hovers near $100 a barrel, boosting daily transportation costs by roughly $700 million versus a year ago.
U.S. regular gas averaged about $4.14/gal on Labor Day weekend and diesel hit a record $5.85/gal, with prices rising due to the Iran conflict, Strait of Hormuz disruption, and refinery capacity limits; while futures hint at possible relief, volatility and higher transportation costs loom for consumers and delivery services.
Meduza mapped Russia’s second fuel crisis using 478,685 GdeBENZ reports (July 4–Aug 23, 2026) and bank data, showing a wave similar in scale to the first but uneven in impact: Moscow and its region were hit hardest in August, with many stations lacking fuel or operating under lines, while St. Petersburg remained comparatively better. The crisis is tied to drone strikes on oil refineries and export controls; prices rose modestly but overall gasoline and diesel sales stayed well below 2025 levels. The fall could worsen with seasonal demand and refinery maintenance.
Diesel prices in California surged back toward $7 per gallon as wars in Europe and the Middle East disrupt refineries and Strait of Hormuz flows, with CA prices up about 30 cents from a month ago and $1.89 higher than a year ago. Global refinery margins have jumped to roughly $100 per barrel, and about 8% of refining capacity is offline, fueling a broader inflationary squeeze on transportation, farming, and groceries. California remains pricier due to costly imports, a specialized diesel formulation, and state taxes/regulations, and analysts say relief hinges on damaged refineries coming back online and more Middle East exports resuming.
A fresh wave of fuel shortages hits Russia, with Moscow-area gas stations reporting shortages as diesel remains widely available; authorities tighten sales and cite refinery disruptions from drone attacks and rising demand, while export bans and relaxed import rules are used to bolster domestic supplies amid regional restrictions.
After Ukrainian drone strikes disabled the Orsk refinery, Russian regions implemented fuel restrictions and price controls: the Orenburg area capped gasoline at 30 liters per vehicle and limited diesel within settlements (and banned canister fills), while Novosibirsk set a 15% cap on retail markups above wholesale prices; in occupied Crimea, open sales led to price spikes and a return to QR-code rationing with a 100 ruble per liter ceiling for AI-92. The crisis has hit Crimea’s tourism hard (hotels down about 70%), prompting more than 4 billion rubles in one-off aid for tourism workers and fueling speculation of leadership changes in Crimea.
Ukraine said it hit oil refineries hundreds of kilometres inside Russia (in Bashkortostan and Yaroslavl) in an overnight attack, while Russia fired missiles at Ukraine, hitting a Lozova train station and a commercial ship in the Black Sea; both sides have stepped up long‑range strikes and civilian casualties, with Zelenskyy calling the refinery strikes a push toward diplomacy as Moscow touts drone defenses and retaliatory strikes.
Ukraine's energy minister says Kyiv's campaign targeting Russian refineries could sway peace talks, while Kyiv braces for a winter of potential energy attacks. Kyiv seeks more PAC-3 interceptors and hundreds of millions in funding to bolster energy resilience, protect infrastructure, and sustain production amid ongoing hostilities.
Ukraine's drone strikes on Russian refineries have sparked a fuel crisis that’s fueling inflation, slowing industry, and pushing Russia toward GDP stagnation. June inflation reached about 10.6%, with analysts warning the hit could be a temporary spike if refinery capacity recovers; forecasts push end-2026 inflation to around 6.2% and keep the policy rate near 14%+. Monetary policy can't directly fix a fuel shortage, so the government must normalize the fuel market. Debt with floating rates burdens non-military firms, while refinery and oil output declines weigh on industrial production. The scale of damage depends on how long strikes last; a prolonged shortage could even push Russia toward rationing and mobilization economics, with broad civilian impact.
Ukraine's drone strikes on Russian refineries have damaged oil infrastructure and driven Moscow to curb exports, triggering a global diesel price surge—including U.S. prices above $5/gal—and prompting fuel rationing and shifts to imports (e.g., from India) as sectors from agriculture to logistics feel the disruption.
Meduza analyzes SPIMEX trading data from January–early July 2026 to quantify Russia’s gasoline shortage driven by Ukrainian strikes on refineries. About 35 refineries are operating of 39 commissioned; strikes damaged primary processing units, sharply reducing delivery-base volumes (e.g., Moscow ~4,400–400 tons/day; Taneco ~56% drop; Norsi ~63%; Kinef ~80%), while overall exchange volumes for gasoline and diesel fell from ~118–150k tons/day early 2026 to ~80k in June and prices rose about 146% from January. Russia has begun importing gasoline (at least 60,000 tons from India) and is tightening export restrictions; the exchange quota was cut from 15% to 10% in July 2026. Repairs are slow due to sanctions and parts shortages, and the crisis shows no immediate end.
Ukrainian drone strikes have knocked out a significant portion of Russia’s refining capacity, triggering long lines at gas stations, rising prices, and government rationing. Moscow has banned exports, is seeking imports from Belarus and India, and regions near the fighting are hardest hit, while Putin says the situation is not critical but vows to speed up refinery repairs and defense production.
Russia is grappling with a months-long petrol shortage caused by Ukrainian strikes on refineries, triggering rationing, long queues, and rising prices nationwide; Moscow says the situation is not critical, but refinery output has fallen and repairs are slowed by sanctions, risking diesel supply during the harvest season.