Russia¡¯s gasoline crunch is worsening, with at least two-thirds of the country¡¯s regions introducing fuel rationing or suffering supply disruptions following relentless Ukrainian drone attacks on refineries.

On an almost daily basis, regional governors from areas bordering Ukraine to the Amur region near China are being forced to limit sales at filling stations and to try to deter panic buying. The scale of disruptions vary across Russia, but are intensifying and risk getting even worse if drone strikes increase.

Kyiv targeted the oil-processing sector in recent months to curb fuel supplies and bring ¡°the war home to Russia.¡± That has halted operations at several key refineries, pushed up pump prices for drivers, and even led to Russia banning jet fuel exports. On Tuesday, the government said it¡¯s considering a full ban on diesel sales overseas. The inflationary impact could also be a further worry for the central bank.

The growing gasoline crisis mainly impacts the domestic market, because Russia already halted most gasoline exports in April and typically didn¡¯t ship a lot anyway. Higher fuel prices are a particular concern for authorities because they¡¯ve sparked social unrest in the past. The issue is also becoming more sensitive as the Kremlin prepares for parliamentary elections in September.

The current fuel-supply situation in Russia is ¡°difficult but manageable,¡± Deputy Prime Minister Alexander Novak, who oversees the energy industry, said Tuesday at a governmental meeting with President Vladimir Putin. Oil producers have shortened seasonal maintenance at refineries or postponed works to meet domestic demand, Novak said, adding that he holds meetings with companies and government representatives ¡°on a nearly daily basis¡± to monitor supplies.

Russia already has some diesel restrictions, with exports blocked for traders and other sellers that don¡¯t produce their own fuel. A full ban could impact global markets, as the country is a major shipper of the fuel.

¡°We are determining fuel supplies for each consumer individually,¡± Igor Kobzev, governor of the Irkutsk region in eastern Siberia, said on Telegram on Monday, adding that fuel priority is given to emergency services, public transportation and farmers. ¡°Such disruptions are happening across the whole country.¡±

Russia experienced fuel crises in recent summers, but this year it¡¯s being driven by drone strikes. In the first half of June, Russia produced around 835,000 barrels a day of gasoline, according to a person familiar with the data who asked not to be identified as it isn¡¯t public. That¡¯s 15% below a similar period a year ago, and some 6% down month-on-month, the person said.

Some individual regions that normally rely on local refineries for fuel supplies are now having to develop new logistical routes to bring in fuel, which causes supply disruptions....