Ran on LPG: fuel shortage boosted gas prices at gas stations
Against the background of a shortage of gasoline in Russia, gas-engine fuel began to rise in price. In the first half of July, the cost of liquefied petroleum gas (LPG) at gas stations in the country increased by 12% on average compared to June, Izvestia found out. In Moscow, a liter of propane-butane mixture already costs 35-40 rubles, and in some regions, at some gas filling stations, the cost reaches 100 rubles. One of the main reasons was the increase in demand: the rise in price of gasoline led to the fact that car owners began to actively switch to gas. This, in turn, triggered an increase in both retail and wholesale LPG prices. But experts do not expect a shortage of this fuel: the domestic market is fully secured, and exports have been declining recently, as domestic supplies have become more profitable.
Why is the cost of LPG increasing
Gas engine fuel for cars and trucks is used as an alternative to diesel and gasoline, but it is not as common. Most automobile gas filling stations in Russia mainly use liquefied petroleum gas, a mixture of propane and butane. LPG in everyday life is also used for heating some buildings and in industry.
The excitement in the gasoline market and its shortage in a number of regions have led to an increase in demand for gas-powered fuel, which has already affected prices. According to a market source from Izvestia, the average cost of LPG at the country's gas stations in July increased by almost 12% compared to June, from an average of 31.65 to 35.35 rubles per liter.
According to the portal benzin-price.ru Average prices for gas filling stations in Moscow for the first two weeks of July also increased by almost 12%, to 38.49 rubles per liter. As of July 17, the cost of propane-butane at gas stations in the capital ranged from 35 to 40 rubles, Izvestia analyzed using the Russiabase gas station locator website.
In most regions, the cost of gas-powered fuel is 35-45 rubles per liter. In the Irkutsk region, it even reaches 100 rubles at individual gas filling stations, while in the Tyumen region the maximum price does not exceed 38 rubles so far.
According to the Petromarket research group, since the beginning of summer, the volume of LPG sales at gas stations has increased significantly, with an increase of 30% in some gas station chains. They explain the increase in demand by the increased interest of car owners who already use liquefied petroleum gas as a motor fuel, as well as those who are just converting cars to it.
As Izvestia wrote, the demand for the installation of gas cylinder equipment in Russia has already grown by a third. However, as an industry source noted, this is unlikely to lead to a significant and rapid increase in gas consumption. According to him, the growth is being held back by limited capacity to install HBO, a shortage of such equipment and its rise in price over the past month.
How wholesale prices affect the rising cost of fuel in retail
Retail interest in gas is stimulating demand in the wholesale market, Petromarket said. The national average exchange prices for LPG have increased by 35% since the beginning of July, and over—the-counter prices by 29%, Izvestia calculated based on data from the St. Petersburg Stock Exchange. They have now reached the level of the summer of 2024, but they have not yet updated the record of August 2021, that is, the maximum for the entire trading period.
The increase in exchange prices for liquefied petroleum gas is caused by consumer panic due to a shortage of gasoline, explains an editorial source in the market. The same reason is mentioned in the press service of the St. Petersburg Stock Exchange.
— In 2026, LPG prices are supported by increased interest in installing gas cylinder equipment on cars. Consumers use it as an alternative to traditional gasoline. The Russian domestic market was fully provided with supplies from major manufacturers, the press service of the trading platform explained to Izvestia.
According to the exchange, the average daily volume of exchange-traded LPG sales since the beginning of summer, as of July 17, increased by 24.7% compared to the same period in 2025, to 11.4 thousand tons. According to an industry source, the liquefied petroleum gas market is oversaturated during this period. This is precisely evidenced by a significant increase in exchange sales with stable physical shipments. About 43-45% of fuel LPG from the total volume of their consumption is sold at auctions.
Unlike gasoline and diesel, there is no agreement on artificial restraint of retail prices between the government and the factories for LPG. Therefore, the wholesale cost of LPG directly affects the retail cost, explained Alexey Belogoryev, Director of Research and Development at the Institute of Energy and Finance.
Izvestia sent a request to the Ministry of Energy.
What awaits the gas engine fuel market
Among all types of motor fuel for cars, LPG is the most marketable product, as it is not regulated by a damping mechanism. Therefore, the price directly reflects the balance of supply and demand within the country, as well as the influence of foreign market indicators, said Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association.
In the second quarter of 2026, demand for LPG increased by 9% year-on-year. In conditions of a shortage of gasoline, it has become a "lifeline" for light trucks and taxis — along with petrochemicals, they remain its main consumers, as well as the population, such as summer residents, said Alexei Belogoryev, Director of Research and Development at the Institute of Energy and Finance.
The expert added: unlike gasoline and diesel, there is no shortage of LPG in Russia as a whole and is not expected yet. However, due to the critical overload of the railways, its transportation has noticeably deteriorated, mainly due to the lengthening of delivery times. Manufacturers benefit from rising prices and demand, but are forced to solve complex logistical problems. Both loaded and empty trains often get stuck on sidings, and as a result, there are noticeable disruptions in the supply of fuel to gas stations in some regions.
According to Alexey Belogoryev, the domestic market is now fully supplied with liquefied petroleum gas. LPG exports have been declining recently, as supplies within the country have become more profitable than abroad, and the increase in export duties in May–June further reduced the attractiveness of exports.
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