Ukrainian Drone Strikes On Russian Refineries Drive Gasoline Prices To Record Highs

 

A surge in Ukrainian drone attacks on Russian oil infrastructure has sent gasoline prices soaring across Russia, despite a government ban on petrol exports aimed at stabilizing supply.

Ukraine has stepped up strikes on refineries, fuel trains, and pumping stations to weaken Russia’s military logistics while also disrupting daily life. The timing coincides with peak summer demand from drivers and farmers, making the impact more severe.

At least ten major energy facilities were hit this month alone, including the massive Lukoil refinery in Volgograd—southern Russia’s largest. The facility was struck twice in August, with smoke plumes visible after both attacks. Refineries in Saratov and Rostov were also hit, with fires at the latter burning for days. Ukrainian officials estimate the damaged plants account for more than 10% of Russia’s refining capacity.

Fuel Shortages and Soaring Prices

Gasoline shortages have been reported in several Russian regions and in occupied Crimea. Local officials have attributed the crisis to “logistics issues,” while promising measures to restore supply. But residents report popular petrol grades disappearing from stations, with some pro-Ukrainian activists celebrating the shortages as evidence of successful drone strikes.

Wholesale gasoline prices in St. Petersburg have jumped nearly 10% in August and are up about 50% since the start of the year. Consumers are feeling the squeeze, particularly in Russia’s far east. Analysts warn that relief may not come for at least a month, even though Moscow banned petrol exports in late July. The military, however, is less affected since its primary demand is for diesel.

Ukraine’s Expanding Long-Range Campaign

Ukraine’s intelligence services claim that long-range attacks this year have caused $74 billion in damage, with nearly 40% of strikes landing more than 500 kilometers inside Russia. These operations target refineries, storage depots, and pipelines—critical infrastructure that is costly and difficult to repair due to Western sanctions limiting equipment and technology imports.

Moscow has reportedly turned to Belarus for emergency supplies, with Belarusian refiners confirming surging Russian demand for fuel.

Ukraine has also targeted Russia’s oil export routes. Drones recently hit the Druzhba pipeline, which supplies Hungary and Slovakia—two EU nations that maintain ties with Moscow. Both governments protested to Brussels, arguing that Ukraine’s strikes primarily hurt their economies rather than Russia’s.

New Weapons in Development

To sustain its campaign, Kyiv has unveiled a domestically produced cruise missile called the Flamingo, with plans to manufacture up to 200 per month. Military experts say the weapon’s heavy warhead and wide lethal radius could inflict severe damage on refinery equipment, making it a potent addition to Ukraine’s arsenal.

While thousands of Russian gas stations are unlikely to run dry, analysts expect the disruptions to fuel inflation and extend Russia’s gasoline export ban into the autumn, as the Kremlin struggles to contain prices and guarantee domestic supply.