russian Oil at a Discount Returning Home in the Form of Expensive Petrol

According to estimates by fuel market analysts, as of the end of June of this year, the volume of crude oil refined into fuel in russia had fallen to a record low of 4.1 million barrels per day. This is approximately by 25% lower than during the same period last year. The shortage of petroleum products on the rf’s domestic market has forced the government to urgently seek suppliers abroad.

One of the main importers of petrol and diesel fuel for the rf today is its closest ally – belarus. Oil industry officials in minsk have shown “understanding” for their neighbors’ problems and are supplying petroleum products to the “fraternal people” at purely market-based prices. Specifically, AI-92 petrol costs the “big brother” 94 rubles ($1.20) per liter in bulk, and 127 rubles ($1.62) per liter when delivered to russia. By comparison, the average retail price at filling stations in the rf as of early July (before the fuel panic began) was only 65 rubles (approximately $0.83) per liter of AI-92.

Indian partners didn’t miss the opportunity to profit from the russian shortage either. According to expert estimates, as of the end of June, 60,000 tons of petrol had already been shipped from India to the rf. Indian AI-92 petrol is being sold to the russians in bulk at a price of about $1.07 per liter. It is noteworthy that on the eve of these shipments, moscow nearly doubled the discount on its crude oil for Indian refineries – from $4 to $7 per barrel, calculated against the Brent benchmark.

As a result, the kremlin’s “friends” first buy russian oil at huge discounts and then sell finished petrol back to russia at exorbitant margins. And all of this is done with the utmost respect for a “reliable partner”.