Fuel prices in Russia have steadily increased over the past three years, outpacing inflation and creating regional disparities, primarily due to taxes and excise duties. Despite Russia being a major oil producer, domestic fuel prices are influenced more by fiscal policies than the global oil market.

Over 60% of the price per liter of fuel in Russia comprises taxes, including excise taxes, VAT, and MET (mineral extraction tax). These taxes are systematically increased, contributing to the constant rise in prices at gas stations. This fiscal approach treats the fuel market as a reliable source of budget revenue, regardless of global oil prices.

The most popular gasoline, AI-92, rose by 19.28% from April 2022 to April 2025, reaching 56.48 rubles per liter. AI-95 increased by 20.04% to 61.71 rubles per liter. High-octane gasoline AI-98 saw the most significant jump, soaring by 39.59% to 84.05 rubles per liter. Diesel fuel, critical for commercial transport, rose by 30.79% to 71.27 rubles per liter.

The state compensates oil companies for lost profits in the domestic market when global prices are low, preventing domestic prices from reflecting global price drops. The Federal Antimonopoly Service (FAS) encourages market participants to restrain price growth at gas stations, creating the illusion of control but not necessarily lowering prices.

Experts suggest abolishing the excise tax on fuel to significantly reduce prices, potentially by 3 rubles per liter. They also propose allowing the addition of methanol to motor fuel, a practice common in Europe, the USA, and China. Another suggestion involves shifting the burden of falling income from the fuel industry by increasing the excise tax on tobacco products.