Russia’s Fuel Crisis Hits Hospitals and Fire Services as State Contracts Collapse

Key Points:

• Russia is experiencing a severe fuel shortage that has disrupted gasoline supplies to hospitals, fire brigades, and municipal services, causing state fuel tenders to collapse nationwide.
• The number of canceled or unfulfilled fuel tenders for essential public services tripled in May and June compared to the previous year, as suppliers avoid fixed-price contracts due to rapidly rising fuel prices.
• Ukraine's long-range drone strikes on Russian oil refineries have significantly reduced Russia's refining capacity, cutting crude processing by 25% and gasoline output by 17%, exacerbating the domestic fuel supply crisis.
• Public institutions increasingly face re-tendering processes and often must accept single-supplier contracts without competition, while fuel rationing measures have been implemented in over 40 Russian regions.
• The ongoing fuel shortage and supply disruptions reflect sustained damage to Russia's energy infrastructure, with more than 50 Ukrainian drone attacks since March impacting refinery operations.