Farmers have begun raising concerns over rising fuel costs and even shortages at the height of the planting season. However, experts interviewed by RG believe this is not yet a systemic fuel deficit, but rather a combination of seasonal demand, logistical constraints, and the fallout from reduced refinery utilization.
According to the Narodny Farmer association, fuel prices for agricultural producers have risen by approximately 35% over the past two months. Stanislav Sankeyev, the association’s executive director, told Rossiyskaya Gazeta that a challenging fuel situation is now evident across the country.“For example, in the Volga and Central Federal Districts, our colleagues report prices starting at 87 rubles per litre, and diesel is not available immediately—wait times are upwards of four days,” he said.
In Mari El, diesel is currently selling for 88 rubles per litre; in the Ulyanovsk and Samara regions, 89 rubles per litre; and in the Belgorod and Bryansk regions, around 90 rubles per litre.
For enterprises operating under high credit burdens and rising production costs, even this level of increase becomes a significant factor.
Fuel for agricultural producers has risen by roughly one-third over the last two months, and diesel is not always readily available.Small farms feel the price hike most acutely. Large agriholdings often have the ability to enter long-term contracts, build fuel inventories in advance, or benefit from more favourable purchasing terms. For farmers and mid-sized agricultural enterprises, the room to manoeuvre is considerably more limited.
Moreover, the impact of higher fuel prices extends beyond the added costs of field operations. Diesel remains a key component of transportation expenses, so price increases ripple through the logistics of agricultural products. The higher the cost of moving raw materials and finished goods, the greater the pressure on the entire production chain.
Industry representatives, however, are not yet inclined to dramatize the situation. Alexei Krasilnikov, executive director of the Potato Union, acknowledges fuel supply problems in certain regions but considers them manageable. When availability issues arise in one area, fuel is promptly brought in from neighbouring regions. At the same time, Krasilnikov estimates that transportation costs account for only about 5% of total expenses, so even a notable fuel price increase does not necessarily lead to a sharp rise in vegetable and potato prices at retail. The current situation is having a far more serious impact directly on producers.
Looking at exchange price movements, in the European part of Russia, diesel fuel—the primary fuel used for agricultural work—has risen 19% since the start of March, while off-exchange transactions show a 17% increase. But this is an average figure; the European part of Russia is vast, and agribusiness enterprises, especially small and medium ones, typically buy fuel from local oil depots rather than large traders.
As Yuri Stankevich, deputy chair of the State Duma Committee on Energy, noted in an interview with RG, wholesale price increases may outpace the trends reflected in exchange indices. Not all fuel volumes are sold through exchanges—a significant portion moves via off-exchange contracts, and the final price for the agricultural end-user includes logistics, storage, and the credit burden of traders. When market participants anticipate further price increases and reduced supply, they may build a “risk premium” into the price.
Spring fieldwork traditionally creates a peak in diesel consumption. But experts are confident there is no nationwide fuel shortage.The issue of rising prices in the small wholesale segment, which is not captured in St. Petersburg Exchange statistics, was already raised by the industry during last autumn’s gasoline price surge. Moreover, compared to May of the previous year, exchange sales volumes of diesel have fallen sharply—by 80% (from 1.1 million to 0.61 million tonnes). This is despite there being one more trading day for fuel on the exchange in May this year.
According to Stankevich, rising wholesale fuel prices for agricultural producers and localized shortages result from a combination of several factors. Seasonal demand and logistics play a primary role. Spring fieldwork traditionally creates a peak in diesel consumption. In the southern regions, infrastructure is under greater strain than the national average: demand is concentrated over a short period, while logistical capacity (railways, oil depots, truck fleets) is limited. Even when overall production is sufficient, local bottlenecks emerge, leading to temporary shortages. The situation is currently exacerbated by ongoing attacks on refineries and storage infrastructure (oil depots and fuel storage facilities).
According to Rosstat, in April of this year, domestic production of coke and petroleum products fell by 9.2% year-over-year and by 11.3% compared to March. Data on fuel output by type is unavailable, and consolidated figures for May have not yet been published. Energy expert Kirill Rodionov believes that the April decline is a continuation of the trend from the first quarter of 2026, when the volume of primary oil refining fell by 1.6% year-over-year (to 64.1 million tonnes), while gasoline and diesel production decreased by 4.8% (to 10.8 million tonnes) and 0.6% (to 21.4 million tonnes), respectively.
Nevertheless, experts are confident there is no nationwide fuel shortage. The issue is supply disruptions in certain regions. As Sergei Frolov, managing partner at NEFT Research, observes, local shortages and price increases are tied to a physical deficit of fuel in the southern regions, caused by attacks on refineries and disrupted logistics. The required fuel volumes can be purchased, but the challenge lies in transporting it intact to its destination.
A similar view is held by Sergei Tereshkin, CEO of Open Oil Market: unscheduled refinery repairs have led to market panic. Once the refinery utilization situation becomes clearer, prices will likely subside.
Of course, it would be a mistake to blame everything on the difficult fuel market. According to Dmitry Gusev, deputy chair of the supervisory board of the Reliable Partner association and a member of the expert council of the “Russia Gas Stations” competition, it is surprising that agricultural producers complain every spring about rising fuel prices. The annual price dynamics of fuel are well known, especially to those whose business success depends on them. One could purchase fuel in advance, when prices are not breaking records, or hedge risks—for instance, arrange with a specialized agricultural bank to finance fuel purchases during the low season, in winter.
An objection to this is that buying fuel in advance is only feasible for large agribusinesses. Medium-sized companies and small farmers rarely have the technical and financial capacity to build reserves ahead of time. As for loans, even on preferential terms for large firms, a credit to purchase fuel would represent a significant financial burden. On the other hand, after nearly 40 years of private-sector agribusiness, participants could have learned to prepare for the annual spring diesel price increase.
The Ministry of Energy declined comment on RG’s inquiry. The Ministry of Agriculture had not provided comments by the time of publication.
Source: RG.RU
