Russia buys Indian gasoline amid crisis, but can't agree on price

Russia's efforts to resolve its fuel crisis, exacerbated by Ukrainian long-range strikes that have crippled 45% of its oil production capacity, have hit an unexpected snag: imported gasoline from India remains undelivered.

The gasoline, purchased in July to partially offset domestic shortages, has yet to reach either gas stations or the wholesale market. Reports indicate the fuel is "stuck" in Murmansk port, remaining on tankers because oil companies are unable to agree on a selling price. This price is reportedly double the wholesale rate on the St. Petersburg exchange, where Ai-92 gasoline was trading at 77,600 rubles per ton on August 13.

A tanker carrying the Indian gasoline arrived in Murmansk on August 5, delivered by Nayara Energy, a refinery where Rosneft holds a 49% stake. Despite the technical possibility of purchasing gasoline via the exchange since July 29, no batches have been sold. Importers cite high logistics costs for the lengthy journey from Indian ports to the Russian Arctic, which takes over a month and involves transferring fuel between tankers.

Regulators are reportedly demanding that oil companies sell the Indian gasoline at Russian domestic market prices. However, importers point to the significant logistical expenses. Belarusian gasoline, priced at approximately 140,000-142,000 rubles per ton for Ai-92, is being sold in Russia. The Ai-95 grade from Belarus costs 180,000 rubles per ton. Belarusian refineries have sent a record 665,000 tons of gasoline to Russia this year, a 25-fold increase from the previous year.