During the ongoing repairs at Lukoil’s Nizhny Novgorod refinery, the Russian Ministry of Energy and a group of oil industry players formulated a plan to keep fuel flowing smoothly across the domestic market. This plan was outlined through official ministry communications and corroborated by reporting channels within the ministry network. The objective was clear: prevent any disruption to fuel availability inside Russia while work on the refinery continues.
According to the ministry, Lukoil has already drawn up a concrete strategy to resolve the issues and restore normal operation as quickly as possible. The ministry emphasized that, to safeguard the home market, the step of reducing export-focused shipments would be complemented by reallocating existing resources from other market participants. In effect, tighter priority on domestic supply was deemed essential to maintain stable availability for Russian consumers.
The ministry also highlighted that motor gasoline production at domestic enterprises currently meets all domestic requirements. Resource stocks remain robust, with reserves approaching two million tons, which is deemed more than adequate to satisfy demand under current conditions.
Earlier, Kommersant cited unnamed sources reporting an incident at Lukoil’s Nizhny Novgorod facility. The report suggested that one of the two catalytic cracking units, a critical component in gasoline production, had been taken offline, potentially affecting output.
Following these developments, Lukoil reportedly halted the sale of AI-95 gasoline on the stock exchange as of January 10. This move contributed to a rise in fuel prices on the exchange due to changes in trading dynamics. According to Kommersant’s sources, the oil company’s strategy was to prioritize fueling its own network of gas stations through controlled supply, a measure that some market participants interpreted as a signal to stockpile fuel in anticipation of tighter market conditions.
These events come amid broader economic pressures, including sanctions that have influenced Russia’s revenues from oil and natural gas, with subsequent effects on the fiscal outlook and industrial investment cycles. Analysts note that the government’s response focuses on maintaining energy security while balancing the state’s need to support national production and domestic consumption. (Kommersant)