Gasoline Deficit Hits Russia

Apr 27, 2011, 06:46 by David Hope

Parts of Russia could run out of gasoline and diesel fuel as producers look to cash in on rising prices in foreign markets, a fuel union official warned.

Oil and gasoline prices are at post-recession highs because of conflicts in the Middle East and modest increases in demand related to economic recovery.

Russian Fuel Union President Evgeny Arkusha said some parts of the country might run out of fuel because oil producers are looking to exploit high prices in foreign markets, Russia's state-run news agency RIA Novosti reports.

"If the situation persists, many regions may be left without fuel altogether in the next few days," he said.

The Russian government has moved to keep prices modest in the domestic market, meaning oil companies are getting better deals for their fuel products elsewhere.

Russian Prime Minister Vladimir Putin weighed in on control over fuel prices in February, saying there needed to be more oversight in the fuel business.

Source: UPI