MOSCOW: The Russian energy ministry said on Friday that the transportation of fuel would take priority on railways as the government tries to alleviate shortages and keep a lid on prices.
The Kommersant newspaper earlier said the government had issued an order, ensuring priority for transportation of fuel cargos via railways to tackle traffic congestion and meet a surge in seasonal demand, citing unnamed sources.
Russian refineries have cut fuel production due to outages and numerous Ukraine’s drone attacks.
Russian oil refining capacity shut down in the wake of Ukrainian drone attacks in the first quarter amounts to about 4.6 million tons (370,500 barrels per day), or some 7% of the total output, Reuters calculations show, on top of maintenance related to other causes.
Kommresant said Prime Minister Mikhail Mishustin issued the instructions on fuel transportation to the Russian Railways, Energy Ministry and the Ministry of Transport.
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The Energy Ministry told Reuters that in accordance with its instructions, the ministry was drawing up monthly schedules for the transportation of petroleum products jointly with oil companies and the Russian Railways.
It also said that the government’s instructions will be monitored by a group headed by the Deputy Prime Minister Alexander Novak.
“Priority transportation from the refineries and delivery of petroleum products to consumers will ensure an increase in production as well as provide additional fuel supply to the regional oil depots during the period of seasonal demand growth,” it said.
“This will have a positive effect on the price situation on the motor fuel market.”
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