Gasoline and Refined Petroleum Products Production Outlook for Russia

CEIC Russia Data Talk: Gasoline production in Russia has kept a steady pace since the 2008 global crisis. Gasoline, along with diesel, residual fuel oil and aviation kerosene are the main refined products of the Russian petrochemical industry. Automobile gasoline production reached 3.277 million tonnes in June 2013, which was just 0.2% higher than in June of the previous year. Gasoline production grew in each month of 2013, relative to year earlier levels, except for virtually zero growth in February and June 2013. Relative to other types of fuel, automobile gasoline production was significantly lower than the production of diesel fuel (6.044 million tonnes) and residual fuel oil (6.256 million tonnes) in June 2013. Aviation kerosene production of 0.965 million tonnes in June 2013 comprised the smallest portion of the overall production of refined fuels. The quality of automobile gasoline varies in terms of the octane number (a rating of fuel performance) and class (a measure of emitted pollution), both of which have exhibited gradual changes over the past three years. A higher octane number indicates better fuel performance and a higher class means lower pollutant levels. Gasoline with octane number of 80-95 takes the largest share of gasoline production, with 2.158 million tonnes produced in June 2013. The second largest group of gasoline with octane number 95-98 accounted for 0.876 million tonnes produced in June 2013. The lowest group (with octane number below 80) and the highest group (with octane number 98-100) both account for the least production of gasoline. Russia has followed, albeit with delay (partly because it is not an EU member), the European Automobile Manufacturers Association’s guidelines to limit the amount of fuel pollution by producing a different class of automobile gasoline. Automobile gasoline class 2 was banned in January 2013 in Russia and oil refineries accordingly expanded their production of gasoline class 5, making it the most widely produced type with 1.408 million tonnes in June 2013. The major change from class 4 to class 5 occurred in July 2012 when most of the refineries made a switch towards cleaner gasoline in part due to the expansion of automobile sales and the stricter environmental standards for new European cars. The biggest refinery producers of gasoline are companies controlled by Rosneft, Bashneft, Lukoil, Surgutneftegas, and Gazprom - the biggest oil-producing holdings in Russia. Top producing refineries are as follows: Gazprom Neft – Omsk Refinery, Former TNK-BP – Ryazan Refinery, Lukoil-Nizhegorodnefteorgsintez, Gazprom Neft-Moscow Refinery, Surgutneftegas-Kirishinefteorsintez, and Bahnefto Novo Ufa Refinery, among others. Top gasoline-producing regions are distributed according to the location of the top producers, the biggest of which are concentrated in Volga Region Federal District, Central Federal District and Siberian Federal District, which consist of the following top gasoline producing regions: Republic of Bashkortostan, Omsk Region, Ryazan Region, Nizhny Novgorod Region, Samara Region and Yaroslavl Region. Russia remains one of the biggest producers of oil and fuels. However, the level of production and the quality of refinement for refined fuels such as kerosene and high-grade gasoline (especially those with a high octane number and high gasoline class) can be improved. The development of modern infrastructure spurred by additional investment into advanced technology, as well as the replacement of export patterns from crude oil to higher grade gasoline, can improve competitiveness and consequently bring more tax and export revenues to the economy. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. By Alexander Dembitski - CEIC Analyst Back to Blog
22nd August 2013 Gasoline and Refined Petroleum Products Production Outlook for Russia

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