Ukrainian drone strikes on Russian refineries have disrupted fuel supplies, driving record-high wholesale prices and shortages across Russia during peak summer demand, according to Bloomberg. Smaller gas stations are struggling, prompting Moscow to extend a fuel export ban, while retail prices have risen 5–6% this year, fueling inflation worries. They write:

Ukrainian drone strikes on Russian oil refineries have exacerbated a summer crisis on the domestic fuel market, leading to a spike in prices amid high seasonal demand.

Wholesale fuel prices in Russia have hit records in August as supplies shrank. […]

Ukraine has attacked eight Russian refineries so far this month, sending offline around 10% of the country’s active capacity, as Kyiv seeks to disrupt the Kremlin’s war machine by reducing fuel supplies to frontline forces and cutting its oil revenue.[…]

While this hasn’t yet had a major impact on overall price growth, it is likely one of the drivers of higher household inflation expectations this month, according to Dmitry Polevoy, investment director at Moscow-based Astra Asset Management.

Read more here.