Putin Can’t Hide Russia’s Gasoline Crisis

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Putin Can’t Hide Russia’s Gasoline Crisis

Gasoline is now being rationed across Russia — from Kaliningrad in the west to Vladivostok in the Far East. The nation that boasts of being an energy superpower can’t even keep its own drivers on the road.

In many regions, motorists are limited to just 10–20 liters per visit — if they can find fuel at all. Some areas are down to only diesel, while others face completely dry pumps. Prices are soaring too: wholesale gasoline has spiked more than 50% since January, while diesel jumped nearly 10% in just one month.

Pavel Bazhenov, head of the Independent Fuel Union, admitted that the rationing is meant to keep stations from shutting down altogether — something that smaller operators have already been forced to do. Even Russia’s oil giants are scrambling. Lukoil recently banned the sale of gasoline in jerry cans at some Moscow stations and suspended fuel card use in Nizhny Novgorod to prevent panic buying.

The shortages aren’t just an inconvenience. They’re a warning flare that Russia’s war economy is faltering. Ukrainian drone strikes have crippled refineries, disrupted supply chains, and left the Kremlin struggling to maintain control. At times, Russia’s refining capacity has fallen by nearly 20%, with exports from key ports sharply reduced. In Crimea, nearly half the gas stations have already run dry.

Since August, Ukrainian drones have hit at least five major refineries, cutting capacity by 17% — the equivalent of 1.1 million barrels per day. Wholesale fuel prices have soared, and now Moscow is even weighing cuts to oil production. That possibility was quickly denied by state pipeline monopoly Transneft, highlighting just how sensitive the Kremlin has become to any hint of weakness.

Kremlin spokesman Dmitry Peskov insists Russians are “completely united around President Putin” and willing to bear the burden, but on the ground the picture looks very different. Ordinary Russians face inflation, conscription, and now the breakdown of their daily commutes. Truckers whisper of bankruptcy, farmers worry their machinery will sit idle, and families wonder how long they can afford to keep moving.

The Russian economy itself is slipping. The state-owned development bank VEB has confirmed two consecutive quarters of contraction — a technical recession. Even German Gref, head of the powerful Sberbank, conceded that the economy is in “technical stagnation.” The Finance Ministry, desperate for revenue, is now pushing a VAT hike from 20% to 22% to fund defense and security.

Putin’s loyal media outlets are trying to downplay the crisis, blaming “scheduled refinery maintenance” or bad weather. But the reality is harder to ignore. Regional officials have confirmed rationing, and social media is filled with reports of empty pumps and stations turning away frustrated customers.

Deputy Prime Minister Alexander Novak has already extended a gasoline export ban through the end of the year, while also restricting diesel exports. He admitted that some regions are still struggling but claimed they are “covered by accumulated reserves” — though he admitted the balance for September and October remains “difficult.”

History offers a warning. In 2022, Kazakhstan’s spike in fuel prices sparked nationwide protests, looting, and the fall of a ruling dynasty. Russia has faced smaller protests over fuel and utilities in recent years. If this crisis deepens, it could ignite something much larger.

Putin once used oil and gas as weapons of power. Now his own system can’t even fuel itself. No amount of propaganda can refill an empty pump. If the shortages worsen, the very foundation of Putin’s rule — built on fossil fuel dominance — could be at risk.

Russia may yet patch the problem with repairs, rerouted supply chains, and heavy state spending. But each “fix” only drains reserves and exposes how fragile its war economy has become. Putin rose on oil and gas. Whether he falls at the pump remains an open question.

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