Gasoline Prices in Krasnodar Undercut National Average Draw Attention
In the year 2025, Russia has witnessed a significant rise in gasoline prices, with retail prices escalating by approximately 18% year-on-year and an additional 8% hike anticipated by the end of the year, according to Ukraine's Foreign Intelligence Service.
Since the beginning of the year, prices have surged more than 25%, putting considerable strain on Russian consumers. For instance, the price of AI-95 gasoline increased by 11% in June 2025, reaching RUB 67,456 per tonne, while AI-92 rose by 12% to RUB 64,462 per tonne. The average consumer price of gasoline in Russia was around 59 rubles per liter in early 2025, showing slight month-to-month increases recently.
Several factors have contributed to these price increases, including higher excise taxes (+4%), reduced state subsidies for oil producers, rising transportation tariffs by Transneft (up to +10%), and a nearly halved seaborne gasoline export volume compared to the previous year (47% drop in May).
The Russian government is also considering imposing a complete ban on gasoline exports to alleviate domestic fuel price pressures. However, such a ban could potentially reduce industry profits and provide little immediate relief for consumers.
In a twist of events, the launch of a gasoline production plant in Kuban has been delayed. Despite no explicit confirmation regarding this particular plant's delay, the broader economic challenges in the fuel and energy sectors, including export restrictions and rising costs, may be contributing factors to delays in new fuel production projects such as the Kuban plant.
The delay in the Kuban gasoline production plant does not seem to have affected the overall gasoline market in Russia or the prices of AI-92 and AI-95 gasoline in other regions. Additionally, the economic situation in the Kuban region and the government's gasoline pricing policy remain unaffected by the delay.
In Krasnodar, the average price of AI 92 gasoline at gas stations today is 57.17 rubles per liter, while AI 95 gasoline is priced at 61.5 rubles per liter. Both prices are at their highest levels for the year 2025.
As the year progresses, consumers and industry experts will closely monitor the situation, hoping for a stabilisation in gasoline prices and the timely launch of new production plants to ease the strain on the market.
[1] Ukraine's Foreign Intelligence Service report on Russian gasoline prices [2] Data from the Saint Petersburg International Commodity and Raw Materials Exchange [3] Report by "Live Kuban" on the delay in the launch of the gasoline production plant in Kuban [4] Economic reports on the challenges facing the fuel and energy sectors in Russia.
- The escalating gasoline prices in Russia, driven by factors such as higher excise taxes, reduced state subsidies for oil producers, and rising transportation tariffs, have raised concerns within the finance industry, potentially affecting the profitability of companies in the energy sector.
- Despite the delay in the launch of a gasoline production plant in Kuban, the overall energy market in Russia remains dynamic, with ongoing close monitoring by consumers and industry experts in hopes of stabilizing gasoline prices and addressing the strain caused by these increases.
