Putin Changes Subsidy Rules for Oil Refineries: What It Means.

According to inkorr.com: Vladimir Putin has made a decision to relax the fuel subsidy rules for Russian oil refineries. From now on, enterprises will be able to receive financial assistance even if market prices for fuel significantly exceed the established threshold values. These innovations will take effect on October 1 and will remain in force until May 1.

According to Putin's decree, oil refiners will have the right to subsidies even if wholesale prices for diesel and gasoline greatly exceed the threshold prices.

The aim of these subsidies is to support oil companies in providing fuel to the domestic market, even when export prices are more profitable. This decision is a response to Ukraine's attacks on the Russian oil industry.

Increase in Fuel Prices

Russian Deputy Prime Minister Alexander Novak announced that from September, prices for subsidized fuel will rise by 10%. The maximum increase in market prices for gasoline will be 20%, and for diesel fuel - 30%.

The price of gasoline in Russia rose by 2.58% in September 2025, the highest rate since 2018.

Due to attacks by Ukrainian forces, which have significantly impacted the market, Russia has experienced up to a 20% decrease in domestic demand for gasoline. As a result, the country is forced to increase fuel imports from Belarus and China.

Thus, Putin's decision to change the fuel subsidy rules aims to support oil refining enterprises amid a challenging economic situation. High fuel prices and falling domestic demand force Russia to seek new ways to meet its energy needs, including increasing imports from other countries.