Motor oil prices in Russia spike 40% as imports run short

Source: Kommersant

Russia’s motor oil supply chain has run into trouble. Market participants told the Russian business daily Kommersant that a shortage hasn’t hit yet, but delivery times have stretched, and prices in some segments have recently jumped by 40%.

“Certain popular oil types are simply unavailable — we’re buying whatever manufacturers already managed to ship, through resellers,” said Vladimir Andreev, head of the service division at the Fresh online auto marketplace.

Other sources told Kommersant that the crunch mainly involves imported oils. But some market participants also reported disruptions in the supply of Russian-made oils, which they believed might be linked to a lack of imported additives needed for production. Those same sources suggested the disruption in Russian oil supplies could also stem from “unscheduled repairs at refineries” following Ukrainian drone attacks.

Market participants also pointed out that Russia has allowed the sale of gasoline meeting older environmental standards because of the fuel crisis. Since this fuel has a higher sulfur content, drivers using it in modern vehicles are advised to change their oil more often to limit the risk of engine damage.

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Motor oil prices in Russia spike 40% as imports run short

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