Russia sees unexpected surge in diesel car demand amid fuel shortages

Russia is experiencing an unexpected surge in demand for diesel-powered cars, a trend driven by severe gasoline shortages and disruptions at fuel stations across the country. Traditionally, diesel vehicles have held a modest share of the Russian automotive market, accounting for only about 6% of the 47.7 million registered cars.

However, recent data indicates a shift. In July and the first half of August, the share of diesel cars in new vehicle sales rose to 1.7%, up from 1.4% in the first half of the year. The used car market has also seen an increase, with diesel vehicles now making up 6.3% of sales, compared to 5.9% in January-June.

Experts attribute this growing demand to an imbalance in fuel supply. While gasoline remains scarce in many areas, diesel fuel availability has remained more stable. Market participants report that demand for diesel vehicles has multiplied several times over, but the supply is insufficient to meet this rising interest.

The scarcity is exacerbated by limited domestic production. Russian manufacturers produce very few diesel models, making up only 0.3% of the total supply. Chinese automakers are also not significantly supplying diesel passenger cars to Russia, focusing mainly on pickups. Consequently, most diesel vehicles imported through unofficial channels are expensive crossovers and SUVs like the BMW X5, X7, or Toyota Prado. Official dealerships have very few diesel options left, and even the used car market is struggling to satisfy demand.

This fuel crisis is reportedly impacting around 50 million Russians and is linked to potential losses of 20% to 40% of Russia's oil refining capacity due to drone strikes in Ukraine. The situation has led some regions to impose restrictions on gasoline sales.