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Russian oil production sees biggest drop in 20 years amid refinery attacks
🇷🇸 Serbia /Conflict & Security

Russian oil production sees biggest drop in 20 years amid refinery attacks

From N1 Serbia · () Serbian

Translated from Serbian, summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • Russian oil production fell by 12% in June compared to May and 21.7% year-on-year, marking the largest decline since 2006.
  • The production drop has led to gasoline and diesel shortages and price increases, with fuel prices rising 1.7% and 1.9% respectively in one week.
  • Russia has begun importing fuel and offering tax breaks for imports to stabilize the market, with partial stabilization reported.

Russian oil production experienced its steepest drop in two decades in June, plummeting by 12% from May and 21.7% compared to the previous year. This significant decline, the largest since 2006, is attributed to repeated attacks on the country's refineries. The impact has been felt across the nation, with shortages at gas stations and a subsequent rise in fuel prices. Between July 14 and 20 alone, gasoline prices increased by 1.7%, and diesel prices rose by 1.9%. Since the beginning of the year, these prices have surged by 18.3% and 20.2%, respectively.

In response to the growing crisis, Russia has resorted to importing gasoline and diesel. The government has also implemented tax incentives for imported fuels in an effort to stabilize the market. Deputy Prime Minister Alexander Novak acknowledged a "partial stabilization" of the market. However, the situation has been severe enough to warrant fuel restrictions for certain Russian military units.

There is partial stabilization of the market.

— Alexander NovakDeputy Prime Minister Alexander Novak commented on the market stabilization efforts.
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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