Oil companies promised Novak to optimize repair times at refineries

Russian Deputy Prime Minister Alexander Novak held a meeting on the situation on the domestic petroleum products market. At the meeting, the management of oil companies announced plans to increase the production of gasoline and diesel fuel, as well as optimize the timing and schedule of refinery repairs.

The meeting was also attended by representatives of the Ministry of Energy, the Ministry of Finance, the Federal Antimonopoly Service, the Ministry of Agriculture, Russian Railways and the St. Petersburg International Commodity Exchange. According to the Ministry of Energy, at the end of 2023, companies increased gasoline production compared to the previous year.

“The stabilization of fuel prices in the country and the absence of its shortage were noted. Inventories of motor gasoline at refineries and oil depots have increased. The market is saturated with winter diesel fuel in conditions of peak demand. The Deputy Prime Minister instructed oil companies to continue to control the level of prices at gas stations,”— reported government.

In September 2023, the Ministry of Agriculture reported that Russian regions faced the threat of fuel shortages. This happened against the backdrop of rising prices and shutdowns for planned repairs of several refineries. To stabilize the situation, from September to October the government temporarily limited export of diesel fuel and gasoline.

January 12 at LUKOIL (MOEX: LKOH) reportedthat one of the two key catalytic cracking units for gasoline production at the Nizhny Novgorod refinery has failed. According to Kommersant’s interlocutors, the plant’s operation was stopped on January 4 due to the breakdown of foreign compressor equipment, which cannot be replaced in the near future due to Western sanctions.

At the Ministry of Energy later statedthat due to the accident at the LUKOIL refinery, the production of motor gasoline in the country decreased. The department promised to meet the needs in the domestic market by reducing exports and reorienting the resources of market participants.

Read more in the Kommersant article. “LUKOIL is cracking”.

Lusine Balasyan