Russia raised fuel subsidies for domestic refiners in June, sending payouts to reflect the country's effort to keep more gasoline in the country. The total jump surpassed six times the figure from last year, as Moscow seeks to keep more gasoline in the country. The move follows growing fuel queues in cities like Moscow, where motorists line up for a scarce supply.

Finance Ministry data shows the government paid 210.6 billion rubles last month—roughly $2.72 billion—to oil processors. That amount eclipses the largest single monthly payout since December 2023, reflecting sharp global fuel price hikes spurred by the disruption in the Strait of Hormuz.

By compensating the price gap between domestic and export markets, Moscow aims to reduce the incentive for refineries to export surplus fuel. The intervention keeps supply chains stable, preventing further price spikes for consumers and protecting domestic refineries from losing revenue in a volatile global market.

With subsidies reaching their highest level in more than a decade, Russia sends a clear signal to its refineries that the state will back them in times of external supply shocks. The policy stabilizes domestic fuel availability and shields local prices from international volatility.