Fuel prices in Russia have significantly increased over the past three years, driven primarily by taxes and excise duties rather than the cost of oil itself. This has led to a situation where fuel is often cheaper in neighboring countries, despite being produced from Russian oil.

The price of AI-92 gasoline rose by 19.28% from April 2022 to April 2025, while AI-95 increased by 20.04%. The most significant jump was seen in AI-98 gasoline, which soared by 39.59%. Diesel fuel, critical for various industries, also experienced a substantial increase of 30.79%.

The primary reason for these rising prices is the high tax burden on fuel, with excise taxes accounting for over 50% of the retail price. These excise taxes are systematically increased each year, contributing to a steady rise in fuel costs regardless of global oil prices. The state uses the fuel market as a reliable source of budget revenue, with approximately 70% of the price of a liter of gasoline consisting of various payments to the budget.

A complex regulatory mechanism further isolates domestic gasoline prices from global oil price fluctuations. This mechanism aims to stabilize the income of oil companies and budget revenues. While it protects oil companies from sharp price drops, it also prevents consumers from benefiting when world oil prices fall.

Experts suggest potential solutions to reduce fuel prices, such as abolishing the excise tax on fuel, which could lower the price by approximately 3 rubles per liter. Allowing the addition of methanol to motor fuel, a common practice in Europe, the USA, and China, is another proposed solution. Some experts also suggest shifting the tax burden from the fuel industry to other sectors, such as tobacco products.