Russia facing fuel shortage

How’s this for irony: Russia, the world’s biggest oil producer, is facing a fuel shortage.

Turn on the radio, and it’s what people are talking about. Talk to a friend with a car, and the concern is there.

The problem hasn’t hit Moscow yet, but reports of shortages in some of Russia’s farther flung regions has consumers worried. And this in the run-up to elections. Not good.

According to Reuters, shortages have been building since February, when Prime Minister Putin told oil firms to be sure to keep prices down (because of monopolistic practices, as well as a lack of refineries, gasoline in Russia is more expensive than it is in the U.S., something that never fails to shock people here). That’s led them to boost exports, rather than selling in country. In the first quarter of 2011, Russia exported 2.14 million tons of gasoline by rail – a 40 percent increase on the same period last year.

And so this weekend, nearly all independently owned gas stations in the Siberian region of Altai ran out of fuel, Reuters reports. With lines starting to form at stations, companies are limiting sales to 20 liters per driver (and, only for drivers with loyalty cards) in Altai, as well as in Novosibirsk and other Siberian regions.

Protests are already planned.

This is potentially very bad. Russians love their cars and it’s car-related problems that have gotten the most people out on the streets – be it tariff increases on imported cars (to boost local industry) or the issue of reckless government drivers.