Russia is considering raising fuel prices to fund the protection of oil refineries
The Russian government is discussing a possible increase in wholesale and retail prices for gasoline, diesel, and jet fuel by 1.5 rubles per liter. According to media reports, the initiative is linked to the need to fund the protection of oil refineries against drone attacks.
According to Russian government officials, the additional revenue from oil companies is planned to be directed toward protecting oil refineries (ORs) and other fuel infrastructure from attacks by Ukrainian drones. Both a one-time increase in fuel prices and a review of restrictions on their growth are being discussed.
Yuri Stankevich, deputy chairman of the State Duma’s Energy Committee, stated that the measure could be implemented not directly, but through adjustments to existing market regulations. For example, through raising excise taxes on gasoline and diesel, modifying the price-stabilization mechanism, and entering into special agreements with oil companies.
In May, drones attacked Russian refineries 15 times. In total, 30 strikes on oil facilities—including pipelines, ports, and tankers—were recorded over the month, according to Bloomberg. This is a record high since the start of the war.
Due to the Ukrainian Armed Forces’ attacks, oil refining volumes in Russia have fallen to their lowest level since 2009. At the same time, oil companies have reduced fuel shipments to the exchange by about a quarter. The reduction in supply has already hit the market: wholesale gasoline prices have jumped 26% since the start of the year, while retail prices have risen 4.3% amid 3.2% inflation.
Earlier, Zelenskyy confirmed the strike on the Saratov refinery
Throughout May 2026, the Unmanned Systems Forces carried out successful strikes on 18 strategic oil and gas facilities within the Russian Federation and on temporarily occupied Ukrainian territories.
One of Russia’s oldest oil refineries is on fire in Saratov.
