According to the People's Farmer Association, fuel for agricultural producers has risen in price by roughly 35% over the past two months. Stanislav Sankeyev, Executive Director of the association, told Rossiyskaya Gazeta that a challenging fuel situation is currently being observed across the country.
"For instance, in the Volga and Central Federal Districts, our colleagues report prices starting at 87 roubles per litre, but immediate diesel supply is not possible – the waiting period is around four days," he says.
Specifically, in Mari El, diesel is now selling from 88 roubles per litre; in the Ulyanovsk and Samara regions, 89 roubles per litre; and in the Belgorod and Bryansk regions, roughly 90 roubles 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 about a third over the past two months. Moreover, immediate diesel supply is not always available.Smaller farms are particularly sensitive to the price rises. Large agroholdings often have the capacity to enter into long-term contracts, build up fuel inventories in advance, or secure more favourable purchasing terms. For farmers and medium-sized agricultural enterprises, the scope for manoeuvre is considerably more limited.
Moreover, the impact of higher fuel prices extends beyond additional fieldwork costs. Diesel remains a key component of transport costs, so price increases also affect the logistics of agricultural produce. The higher the cost of transporting raw materials and finished goods, the greater the pressure across the entire supply chain.
Nevertheless, industry representatives are not inclined to dramatise the situation. Alexei Krasilnikov, Executive Director of the Potato Union, acknowledges that fuel supply issues exist in certain regions but considers them manageable. When availability difficulties arise in one region, fuel is promptly brought in from neighbouring areas. According to Krasilnikov, transport costs account for just about 5% of overall expenses, so even a noticeable increase in fuel prices does not necessarily translate into a significant rise in the price of vegetables and potatoes on the supermarket shelf. The current situation has a far more serious impact on producers themselves.
Looking at exchange price movements, in the European part of Russia, diesel fuel (DF) – the primary fuel used for agricultural work – has risen by 19% since the start of March, and by 17% in off‑exchange transactions. But this is an average across the board; the European part of Russia is vast, and agribusiness enterprises, especially small and medium‑sized ones, typically purchase fuel from local oil depots rather than large traders.
As Yuri Stankevich, Deputy Chairman of the State Duma Committee on Energy, noted in conversation with RG, wholesale price increases may exceed the dynamics of exchange indices. Not all fuel volumes are sold through the exchange – a significant portion is traded via off‑exchange contracts, with logistics, storage, and trader credit costs included in the final price for the farmer. With expectations of further price rises and reduced fuel supply, market participants may incorporate a 'risk premium'.
Spring field work traditionally creates a peak in diesel consumption. But overall, there is no fuel deficit in the country, experts believe.The problem of price increases in the small‑wholesale segment – which is not captured in the St Petersburg Exchange statistics – was already raised by the industry during the petrol price rises last autumn. Moreover, the fact that, compared to May last year, DF sales volumes on the exchange have dropped sharply – by 80% (from 1.1 million to 0.61 million tonnes) – is highly concerning. This is despite there being one more trading day in May this year.
According to Stankevich, the rise in wholesale fuel prices for farmers and localised shortages result from a combination of several factors. Seasonal demand and logistics play a major role. Spring field work traditionally creates a peak in diesel consumption. In the southern regions, infrastructure strain is higher than the national average: demand concentrates in a short period, while logistical capacity (railways, oil depots, truck fleets) is limited. Even with sufficient overall production, local 'bottlenecks' arise, leading to temporary shortages. The situation today is exacerbated by ongoing attacks on oil refineries (ORs) and storage infrastructure (oil depots and fuel storage facilities).
According to Rosstat, in April this year, domestic production of coke and petroleum products fell by 9.2% year‑on‑year, and by 11.3% compared to March. Statistics on fuel output by type are not available, and summary data for May have not yet been published. Energy expert Kirill Rodionov believes that the April decline continues the trend from the first quarter of 2026, when primary oil refining volumes fell by 1.6% year‑on‑year (to 64.1 million tonnes), and output of automotive petrol and diesel decreased by 4.8% (to 10.8 million tonnes) and 0.6% (to 21.4 million tonnes), respectively.
But overall, there is no fuel deficit in the country, experts are confident. The issue involves supply disruptions in certain regions. As Sergei Frolov, Managing Partner at NEFT Research, points out, local shortages and price rises are linked to a physical shortage of fuel in the southern regions caused by attacks on refineries, as well as disrupted logistics. The required volume of fuel can be purchased, but the problem lies in delivering it intact to its destination.
A similar view is held by Sergei Tereshkin, Chief Executive Officer of Open Oil Market: unplanned refinery repairs have led to market panic. Once the refinery utilisation situation becomes clearer, prices are likely to decline.
But of course, it is not right to blame everything on the difficult fuel market situation. According to Dmitry Gusev, Deputy Chairman of the Supervisory Board of the 'Reliable Partner' Association and a member of the Expert Council of the 'Russian Petrol Stations' competition, it is surprising that agricultural producers continue to complain each spring about rising fuel prices. The dynamics of fuel prices throughout the year are well known to everyone – especially to those whose business success depends on them. Fuel can be purchased in advance, when prices are not at record highs. Risks can be hedged – for example, by arranging with a specialised agricultural bank to finance fuel purchases during the low season, in winter.
One could counter that advance fuel purchases are only feasible for large agribusiness enterprises. Medium‑sized companies and small farmers hardly have the technical or financial capacity to stockpile in advance. As for credit, even on concessional terms for large companies, a loan to purchase fuel would be a serious financial burden. On the other hand, after almost 40 years of the private agribusiness sector, its participants could have learned to prepare for the annual spring diesel price rise.
The Ministry of Energy declined RG's request for comment. The Ministry of Agriculture had not provided comments at the time of publication.
Source: RG.RU
