Petroleum products in Russia

Types of petroleum products

Naphtha

Main article: Naphtha

Export of petroleum products

Main article: Export of petroleum products from Russia

2024

The first reactor in Russia for the production of high-octane gasoline was built

Taganrog plant "NATEK-Neftekhimmash" completed the production of the first Russia in the reactor complex for the production of high-octane fuel AI-98 and AI-100. This became known on November 7, 2024. Until that moment, such equipment was purchased exclusively USA in countries. Europe More. here

The government has completely closed the data on the production of petroleum products in the Russian Federation

Government of Russia decided to completely stop publishing data on the production of petroleum products in the country. This became known from the report Rosstat on the dynamics of industrial production, published in August 2024.

According to the data presented in the Rosstat report, the department no longer publishes information on the monthly output of such important oil products as diesel fuel, fuel oil, liquefied propane and butane, as well as coke and coal semi-coke. In addition, stable gas condensate production data were excluded. As explained in the report, this decision was made in accordance with the instructions of the government. Russia

The government has completely closed information on the production of petroleum products in the Russian Federation

According to Interfax, earlier Rosstat continued to publish the dynamics of the production of individual petroleum products. For example, in July 2024, the production of coke and petroleum products increased by 7.2% compared to June 2024, but at the same time decreased by 2.7% compared to July 2023. In the first seven months of 2024, the total production of coke and petroleum products decreased by 3.2% compared to the same period in 2023. However, this data will now not be publicly available.

The Russian Ministry of Energy explained the reasons for the closure of access to this data. Disclosure of information on the production of petroleum products could be a reason for market manipulation by unscrupulous participants, which in the current geopolitical situation could lead to unreasonable pressure on the market. The agency also stressed that a similar decision was made earlier, in May 2024, when data on the production of motor gasoline were hidden. Then the Ministry of Energy said that this is necessary to prevent possible market manipulation.^[1]

About 600 thousand barrels of daily oil refining capacity disabled by strikes of Ukrainian drones

About 600,000 barrels Russia of daily oil refining capacity were disabled as a result of Ukrainian drone strikes Gunvor , CEO Torbjörn Törnqvist said on March 18, 2024.

2023

In Russia, aviation fuel production increased by 1.5%, to 10,841 thousand tons

In 2023, the volume of aviation fuel production in Russia reached 10,841 thousand tons. This is 1.5% more compared to 2022, when the indicator was estimated at 10,681 thousand tons. Such data are given in a study by TK Solutions, the results of which were released at the end of November 2024.

Analysts take into account the release of kerosene-type jet fuel. It is noted that in the period from 2017 to 2023, the industry as a whole showed negative dynamics. The average annual decline in production (CAGR) was approximately 0.7%. This is due, among other things, to the COVID-19 pandemic, due to which the number of flights has sharply decreased.

Aviation fuel production has increased in Russia

In regional terms, the leader in the production of kerosene-type jet fuel is the Central Federal District with a share of approximately 28.4% from 2017 to 2023. In second place is the Volga Federal District with a result of 22.3%. The study says that the production of aviation fuel in Russia in June 2024 increased by 11% on an annualized basis, amounting to 1027.5 thousand tons. In October 2024, the average prices of manufacturers according to the code of the OKPD2 "Jet fuel of the kerosene type" amounted to 66,727 rubles per ton.

There is an active increase in purchases of imported products on the Russian aviation kerosene market - both in kind and in monetary terms. The key trends in this area are: adjustment of domestic production volumes, changes in the dynamics and structure of commodity flows, a significant change in export shipments, adjustment of the regional procurement structure, as well as price changes. When supplying from Kyrgyzstan, Kazakhstan, the most significant price fluctuations are noted, while the most democratic price proposal is fixed for supplies from Belarusian companies.

^[2]

Gasoline production growth by 3.9% to 44 million tons

The production Russia of motor gasoline in 2023 reached 44 million tons, which is 3.9% more than a year earlier. Diesel output rose 4.1% to 88.2 million tonnes. This is evidenced by data Rosstat published in January 2024.

According to TASS, citing materials from the department, at the end of December 2023, gasoline production in Russia increased by 6.9% compared to the same period in 2022, to 4.1 million tons (8.1% more than November 2023), 7.7 million tons of diesel fuel were produced - 1.3% less than in December 2022, but 5.3% more than in November 2023.

Automotive gasoline production in Russia in 2023 reached 44 million tons

Judging by the data of Rosstat, fuel production in Russia in 2023 reached 132.2 million tons. This is more than 131 million tons (88 million tons of diesel and 43 million tons of gasoline), which was predicted in the draft conclusion of the State Duma Committee on Energy to the bill "On the federal budget for 2024 and for the planning period 2025 and 2026." This document was released in October 2023.

On January 27, 2024, Gazprom Neft CEO Alexander Dyukov said that the refining depth of Russian refineries (refineries) in 2023 was 84%. The indicator practically did not change compared to 2022 (83.9%), which is more due to market conditions (export supplies, logistics, the needs of Russian regions) than to the technological capabilities of Russian refineries.

Until 2028, through the mechanism of investment agreements, 50 technological units for the production of fuel will be commissioned, the capacity for the production of gasoline and diesel fuel will increase by almost 4 million tons per year and 30 million tons per year, respectively.^[3]

The share of fake gasoline and diesel in the fuel market of Russia over 8 years decreased from 20% to 4%

The share of counterfeit fuel in the Russian market decreased from 20% in 2015 to 4% in 2023. Thus, over 8 years, the volume of fake gasoline and diesel in the Russian Federation has decreased fivefold. He disclosed such data on March 20, 2024. Ministry of Industry and Trade Russia

As the Minister of Industry and Trade Denis Manturov notes, special attention is paid to the fight against the spread of counterfeit fuel, including at the level of the head of state and the chairman of the government. At the same time, cases of sale of automobile fuel in places not intended for this through mobile gas stations are revealed. According to the minister, such trade is usually accompanied by a whole range of violations of the current regulations, requirements and rules for the transportation of dangerous goods.

The share of counterfeit fuel in the Russian market decreased from 20% in 2015 to 4% in 2023

We tightened control measures, and, according to the results of inspections of gas stations by Rosstandart, the share of counterfeit fuel in the market decreased from 20% in 2015 to 4% in 2023, "said Denis Manturov.

As of March 2024, there are no separate rules for the sale of fuel outside stationary gas stations in Russia. On the other hand, this format of trade is in demand in remote and hard-to-reach areas. To ensure the necessary level of safety and compliance with quality requirements, experts propose to amend regulatory legal acts related to the regulation of activities for the sale of automobile fuel through mobile and container gas stations. Among the measures under consideration are listed the definition of special places for the release of fuel, re-equipment of vehicles, etc. It is assumed that after the establishment of state regulation of such activities by the interested authorities, the issue of strengthening control in this area will be considered.^[4]

Processing growth in December to 5.7 million barrels per day

The volume of oil refining in Russia increased in early December 2023 to the maximum since the beginning of April, compensating for the recent decline caused by logistical difficulties.

From December 7 to 13, refineries processed 5.7 million barrels per day. The daily volume of refining increased by 368,000 barrels compared to the previous period.

Since 2014, the share of Russian catalysts in oil refining has grown from 32% to 76%

The share of domestic catalysts used in Russian refineries (refineries) reached 76%, increasing sharply from 32% in 2014. This was announced at the end of August 2023 by the director of the Department of the Oil and Gas Complex of the Ministry of Energy Anton Rubtsov.

Catalysts are substances that accelerate chemical processes and make them more efficient. They participate in the reaction but are not part of the final product. Thanks to catalysts from the same volume of raw materials, more products can be obtained and this can be done faster than if the processes were on their own. One of the most massive catalysts in oil refining is intended for catalytic cracking. At this stage, heavy oil molecules break down into lighter ones, and high-octane gasoline and diesel fuel components are obtained from the raw materials. In the catcracking process, the solid catalyst moves within the plants, accelerating and improving the efficiency of the process.

According to Rubtsov, Russian oil companies are actively developing the production of catalysts for oil refining and petrochemicals. The implementation of such projects will meet the key needs of domestic refineries. The representative of the Ministry of Energy stressed that by August 2023, Russian oil companies are actively developing the production of catalysts for oil refining and petrochemicals. The implementation of such projects will meet the key needs of domestic refineries.

The development of scientific potential and the formation of sectoral demand will speed up the creation of Russian technological solutions, - said Anton Rubtsov, whose words are quoted by the press service of the Ministry of Energy.

He added that individual companies began to use Russian technological solutions almost from the beginning of the refinery modernization program, which started in 2011, thanks to which domestic plants for delayed coking, isomerization, the production of methyl tert-butyl ether (MTBE) were created at a number of facilities, and catalytic reforming is being introduced.^[5]

69% of the price of gasoline in Russia is taxes

The three largest oil fleet operators in Russia bought 22 thousand tanks amid their shortage

As it became known on February 3, 2023, the three largest oil fleet operators in Russia bought 22 thousand tanks amid their shortage. We are talking about Transoil, Neftetransservice (NTS) and RailGo, which previously rented tanks from Atlanta and Brunswick Rail. Read more here.

2022

Oil oil production in Russia decreased by 20.6% to 3.96 million tons

Oil oil production in Russia in 2022 reached 3.96 million tons, which is 20.6% less than a year earlier. The market decline at the end of December 2023 was reported by the analytical agency BusinesStat.

According to the researchers, in 2022, Russian producers reduced the production of finished and basic oil oils due to a decrease in demand for domestic oil products from foreign buyers and a decrease in domestic consumption. In 2022, manufacturers faced difficulties purchasing imported additives and components for the production of commercial oils, a special premium segment. In addition, there is a dependence of companies on foreign equipment and components, experts say.

BusinesStat reminds that in 2022 large manufacturers of commercial oils Shell and Total announced the termination of their activities in Russia. In February-March 2022, the companies announced their withdrawal from Russian projects and refusal to buy oil and oil products from Russia.

According to analysts' forecasts (the study was published at the end of December 2023), in the near future, oil producers in Russia will be more focused on the domestic market. For domestic companies, it became possible to take the place of foreign brands that left the Russian market (Mobil, Castrol, Shell, Total, Elf and others). In addition, it is difficult to quickly redirect exports and restore their volumes. Access to new sales markets is limited against the background of logistics barriers. Large consumer countries are more focused on the purchase of raw materials than finished products. In 2018-2022. about 30% of oil produced in the country was sent abroad, according to the analytical agency.^[6]

Gasoline sales growth in Russia to 41.9 million tons

In 2022, 41.9 million tons of gasoline were sold in Russia against 41.6 million tons a year earlier. Compared to 2018, the market volume grew by 12.9%, analysts at BusinesStat, whose data was published in December 2023, calculated.

According to the study, most of the gasoline sold in the Russian Federation is intended for road transport - in 2022, the volume of this segment was measured at 36.6 million tons against 36.3 million tons in 2021. At the same time, the share of gasoline is decreasing: if in 2018 it was measured at 93%, then in 2022 - 87.4%.

According to experts, emigration, job loss, forced "vacations" or the transition to remote work have a negative impact on gasoline sales - factors characteristic of both 2020 and 2022. In addition, in 2022, the level of operation of personal vehicles decreased: Russians feared that when maintaining or repairing cars, they would face a shortage of necessary spare parts due to the decision of many car brands to suspend their activities in Russia.

At the same time, the demand for gasoline for the chemical industry is constantly growing. In 2018-2022 sales of gasoline for the petrochemical industry doubled, as a result, the share of this type of gasoline increased from 7% in 2018 to 12.6% in 2022.

As emphasized in BusinesStat, gasoline for the chemical industry in Russia is surplus: in 2018-2022. more than 80% of the product produced was exported, since the country did not have enough capacity to process it. But the situation is changing. So, according to media reports, the Nizhnekamsk enterprise Sibura plans to re-load ethylene production with processing of naphtha, according to a study published in December 2023.^[7]

Growth in diesel fuel production by 5.4% to 84.7 million tons

At the end of 2022, about 84.7 million tons of diesel fuel were produced in Russia, which is 5.4% more than a year earlier. The market not only showed positive dynamics again, but also improved it - in 2021, the volume of this fuel increased by 3.3%. Such data are given in the study of BusinesStat analysts published in June 2023.

According to their estimates, diesel fuel production in Russia in 2022 increased by 9.4% compared to 2018, which was facilitated by an increase in sales in the domestic market and high demand for Russian diesel fuel abroad. In 2018-2022, more than half of the products produced in the country were exported.

According to experts, in 2022 the Russian oil refining industry faced a number of problems: technological sanctions, restrictions on the import of petroleum products of Russian origin and logistical difficulties in exporting. Nevertheless, the production of diesel fuel increased: the growth of domestic sales compensated for the decline in exports, and domestic refineries increased their output.

Despite external challenges, refiners continued to implement investment projects for deep oil refining, modernization of production facilities, according to BusinesStat. In 2022, the Omsk Refinery launched an oil deep processing complex with hydrocracking and slow coking sections. This allowed the company to increase the capacity and depth of oil processing to almost 100%, ensured an increase in the production of diesel fuel, gasoline and aviation kerosene. In addition, in the same 2022, the Kochenevsky refinery completed the construction of a new technological site for the production of Euro-5 diesel fuel, the study says.^[8]

Reduction in fuel oil production by 13.4% to 49.4 million tons

In 2022, 49.4 million tons of fuel oil were produced in Russia, which is 13.4% less than a year ago. Compared to 2018, the market showed a decline of 15.1%, according to a study by BusinesStat, published at the end of October 2023.

Experts attributed the decline in fuel oil production in the Russian Federation to a drop in exports, which is the most important channel for the sale of Russian fuel oil. Having survived the coronavirus () COVID-19 lockdown in the global economy, when refineries reduced capacity utilization in response to a reduction in demand, in 2022 market participants faced new challenges, namely, sanctions from countries that EU directly affected the Russian oil refining industry, experts emphasize.

Thus, transactions with the largest domestic refiners were limited - Gazpromneft, Rosneft, Transneft. A ban was introduced on insurance for the supply of oil and petroleum products from Russia by sea and on the provision of technical or financial assistance related to the transportation of oil and petroleum products from Russia, which forced refineries to look for new methods of delivery. Also, Western countries stopped selling to Russia and repairing equipment for oil processing.

As a result of the compression of demand for Russian fuel oil from foreign buyers, domestic refineries were forced to reduce production volumes in order to avoid overflowing tank farms and forced shutdown. Thus, the loading of the Komsomolsk refinery and the Angarsk petrochemical company (Rosneft group of companies), Slavneft-YANOS (a joint project of Rosneft and Gazprom) was reduced. In the spring of 2022, the work of TAIF-NK was suspended.

According to BusinesStat, in 2018-2022. fuel oil imports to Russia were unstable and ranged from 0.6 to 171.3 thousand tons. Due to the small volumes of imported products, any changes lead to noticeable fluctuations in the dynamics of the indicator.^[9]

Gasoline production exceeded fuel oil production for the first time

Gasoline production in Russia in 2022 exceeded the production of fuel oil for the first time. This became possible thanks to the introduction of stimulating modernization measures - through the mechanism of return excise tax, the Association of Refiners and Petrochemists (ANN) said in March 2023.

According to the results of work in 2022, domestic processing has made serious progress - for the first time, gasoline production exceeded fuel oil production! Processing - 271.74 million tons per year, gasoline - 42.58 million tons (16%), fuel oil - 40.4 million tons (15%), - the association notes.

Also in 2022, Russian enterprises produced 10.66 million tons of jet fuel and 85.14 million tons of diesel fuel. The depth of oil refining in 2022 reached 83.9% against 83.4% in 2021. The volume of investments aimed at modernizing oil refining and petrochemical facilities decreased to 100 billion rubles against 138 billion rubles a year earlier.

According to the association, the oil refining industry in 2022 "as a whole coped with the task of providing the country's national economy with petroleum products in the required volumes and the required quality." At the same time, the Russian Federation exported 35 million tons of diesel fuel, 32.3 million tons of fuel oil, 4.8 million tons of gasoline and 1.5 million tons of jet fuel.

On February 5, 2023, an embargo on the import of Russian petroleum products by sea entered into force, the maximum prices for them when transported to third countries were established. For petroleum products that are traded at a premium to oil (gasoline and gasoline mixtures, gas oil, diesel fuel and aviation kerosene), the price ceiling will be $100 per barrel, and for those that are traded at a discount (naphtha, various fuel oils and oils, as well as spent petroleum products) - $45 per barrel.^[10]

Gasoline production in the Russian Federation increased by 4.3%

Gasoline production in Russia in 2022 increased by 4.3% compared to 2021, and the growth rate of the diesel fuel indicator was 6%. This was announced on January 16, 2023 by Deputy Prime Minister Alexander Novak during a meeting led by Prime Minister Mikhail Mishustin.

In accordance with your order for price control, risk monitoring was carried out on a continuous basis, measures were taken. At the end of the year, retail prices increased significantly below the inflation rate - gasoline increased by 0.7%, and diesel fuel by 10.5%. We will continue this work this year, "Novak said.

According to him, in 2022, the modernization of refineries and the implementation of key oil and gas chemistry projects continued in Russia.

At the same time, the retail cost of fuel increased by almost 10% in 2022. At the same time, in March of the same year, the price of diesel fuel decreased by a record against the background of problems with the sale of petroleum products due to sanctions against Russia. However, if gasoline prices steadily decreased throughout 2022 against the background of a surplus of goods, then the cost of diesel fuel recovered already in April 2022 as oil companies solved their problems with shipments. Due to the persistence of high prices for this type of fuel, gas station operators suffered losses in its sales for almost the entire year. In September, diesel fuel prices almost reached a maximum of 59 thousand rubles. per ton, and then, as demand declined seasonally, they went down, Kommersant reports.

According to Bloomberg, the replacement of part of the Russian volume of diesel fuel will be due to supplies from China, which is one of the largest buyers of Russian oil. At the same time, according to the agency, in 2022, the supply of Russian diesel fuel to Europe decreased to about 30 million tons.^[11]

Gasoline prices in Russia are higher than in most countries of Central Asia

As of November 2022, Russia is the most expensive gasoline in Central Asia: $0.85. In Kazakhstan: $0.45, in Turkmenistan: $0.428.

Gasoline is cheaper even in Kyrgyzstan, which receives oil products from Russia: $0.78. The highest average cost of gasoline in the region is in Uzbekistan: $1.03. However, in the republic, due to problems with liquid fuel, the fleet has been transferred to local gas. Similarly, in Tajikistan, where the fuel market is more than 80% dependent on Russia, gasoline costs $0.97.

In Iran, motorists can refuel for $0.05, in Azerbaijan - for $0.59 per liter, writes GlobalPetrolPrices.

Russia took 11th place in the cheapness of gasoline

By mid-March 2022, Russia is in 11th place in the world in terms of the cheapness of gasoline with an octane number of 95. The price of a gallon in the Russian Federation is $1,631, or $0.431 per liter, according to the data of the GlobalPetrolPrices portal. Read more here.

2021

Gasoline in Russia is becoming more expensive due to the Yandex service

In early November 2021, Yandex sent letters to gas station owners about raising prices for using its Yandex.Refueling service from December 1, which allows drivers to pay for fuel without leaving the car. Because of this, gas stations are forced to include additional expenses in the price of fuel sold to customers.

Yandex's letter says that the tariff for gas stations will rise by 1.2% of the amount of payment in the application to 2.99% plus VAT or 3.59%.

Based on the average prices for gasoline and diesel fuel, the average service commission is approximately 1.2 rubles per liter of fuel at the current tariffs, and about 1.8 rubles will be at the prices planned from December 1, Dmitry Gusev, deputy chairman of the supervisory board of the Reliable Partner Association (an association of energy producers and sellers), told Izvestia.

By mid-November 2021, the gas station on average gives about 18 thousand rubles a day to pay commissions to the application, with new tariffs the amount will increase to 28 thousand rubles, the expert noted. In the country as a whole, Yandex's profit due to gas stations may amount to more than 1.5 billion rubles a year at the tariffs in force by November 19, 2021, and for new ones, not taking into account the potential growth in the number of purchases, will probably exceed 2.3 billion rubles, Gusev said.

Yandex explained that a slight increase in tariffs was caused by "the need to improve the operation of the server part and ensure the speed of the application." "News" explained that the FAS is aware of the situation and "are ready to take measures in the event of violations of the law."

President of the Independent Fuel Union (NTS) Pavel Bazhenov believes that an increase in the cost of payment in a difficult business situation will really become an unbearable burden, given that many gas stations are forced to work in the red. He added that the rise in price of Yandex.Refueling services will force gas station owners to abandon the service or increase prices to compensate for additional costs. In addition, the potential forced disconnection of gas stations from the service may deprive visitors of the possibility of remote and contactless payment for fuel, and purchases through mobile devices have become an important tool in the fight against the spread of the coronavirus COVID-19, Bazhenov said.^[12]

A new record for gasoline prices

In July 2021, the cost of gasoline AI-95 approached the maximum in the entire history of trading on the SPIMEX exchange, which was achieved during the 2018 crisis.

Fuel prices are rising following global oil quotes, which are pressured by the long-term lack of a decision on the OPEC + deal, as well as against the background of high demand in the selling season.

2020: Record increase in gasoline prices to 56,751 rubles per ton

In June 2020, gasoline prices in the United States fell three times, and in Russia the opposite situation - the cost of AI-95 gasoline on the stock exchange reached a historic record. It increased by 0.87% and amounted to 56,751 rubles. per ton. Since the beginning of June, the price of a ton of AI-95 has increased by more than 9% and reached an all-time high. In two months, prices rose by 50%.

2019: How the government keeps fuel prices low

In June 2019, it became known that the retention of prices for motor fuel will result in additional costs for the state budget. Instead of extending the agreement with the oil industry, the Government will begin to restrain gas prices in a new way. So, from July 1, 2019, the rules for compensating losses to oil workers for fuel supplies to the domestic market are changing.

Now the state compensates the oil industry for 60% of the difference between the export and fixed price of gasoline and diesel fuel. This made it possible to temporarily stabilize gas station prices, despite the increase in wholesale prices on the stock exchange. Now the fixed cost of fuel will be reduced, and the correction factors will be changed to 0.75 and 0.7. Accordingly, the cost of compensation to refiners will additionally increase by 25-30 billion rubles. The decision is clearly costly, but probably inevitable.

All the absurdity is different: Ministry of Finance he intends to pull his additional expenses back from the oil companies themselves. In fact, Siluanov's department 'gives with one hand, and takes away with the other': they will compensate for additional costs through an increase in MET. In the fall of 2019, the tax on the extraction of useful is minerals planned to increase by 75 rubles. How this will affect fuel price tags in the long term is not clear.

Officials declare that the new mechanism will allegedly allow a more flexible response to fluctuations in world oil prices. But instead of market mechanisms, a manual control mode is again used. The new damper adjustment leaves no doubt that the industry lacks market regulatory mechanisms. At the same time, it is already obvious to most market participants that "modernization" is able to lay such contradictions in the retail fuel pricing system, when the jump in prices in May 2018 may seem like "flowers."

2018: Petrol Price Maps

2013: Low domestic petrol prices

As of July 2013, the price per liter of unleaded gasoline is noticeably lower than in Norway, Nigeria and Canada.

2012: Request to postpone the modernization of enterprises

In August 2012, it became known that large Russian oil companies asked the government to postpone the modernization of oil refining facilities. The newspaper Kommersant writes about this, citing sources in federal departments.

According to the newspaper, 16 of the country's largest oil companies, including Rosneft",," TNK-BPGazprom neft"," "," "," "" "and NK Alliance, applied to GazpromLukoilBashneft the government with a request to postpone the agreements concluded earlier on modernization. But the postponement has so far been agreed only To Surgutneftegas"." In fact, the government already made concessions to oil companies, since until 2011 similar agreements were already in force, but the enterprises did not fulfill them on time^[13].

The Euro-5 environmental standard limits the content of harmful substances in exhaust gases generated during fuel combustion. The standard was introduced in the European Union in October 2008 for trucks, and in September 2009 for cars. In the EU, the introduction of the Euro-6 standard is scheduled for 2015. To comply with these environmental standards, it is necessary not only to modernize oil refineries, but also the cars themselves.

2011: Agreements on the modernization of production for the production of gasoline according to the Euro-5 standard

In October 2011, agreements were concluded between government agencies and oil companies. It was assumed that Russian oil workers will modernize their production and switch to the production of gasoline according to the Euro-5 environmental standard.

In response, the government allowed them to produce lower quality fuel for some time: the turnover of Euro-2 class gasoline and diesel fuel was allowed until December 31, 2012, Euro-3 class - until December 31, 2014, Euro-4 class - until December 31, 2015.

See also

• Oil production in Russia
• Russian economy

Notes