Russia Allows Refineries to Produce Substandard Gasoline Amid Fuel Shortage

Russia has extended its permission for several oil refineries to sell gasoline and diesel on the domestic market that do not meet Euro-5 standards for sulfur content and other parameters. According to the Russian business daily Kommersant, the decision was made in the fall of 2025 and was originally set to expire on May 1, 2026, but the deadline was extended due to a fuel shortage.

Fuel that does not meet Euro-5 standards is intended strictly for the domestic market. However, sources told Kommersant that the relaxation of fuel quality requirements does not fully resolve the shortage. The higher permissible sulfur levels still prevent a significant portion of small refineries from operating, as their output does not meet even those parameters.

Sergei Frolov, managing partner of NEFT Research, told Kommersant that the additional volumes of petroleum products could partially ease localized shortages observed in some regions. However, he warned that fuel with elevated sulfur content could damage modern vehicles. Frolov also added that timely delivery of fuel to the regions remains a key problem for the market.

Ukrainian forces have been regularly striking Russia’s oil industry facilities. By late May, Reuters reported, nearly all major refineries in central Russia had been forced to suspend or scale back production due to drone attacks. In June, gas stations in various regions of Russia, including Moscow and St. Petersburg, began introducing limits on gasoline sales.

The most severe fuel shortage is in occupied Crimea, where supplies of gasoline and diesel have been disrupted by Ukrainian drone strikes on the highway linking the peninsula with Russia’s Rostov region.