Russian fuel shortage hits retailers, drivers

By Maxim Nazarov and Lyudmila Zaramenskikh

MOSCOW, Nov 13 (Reuters) - Russia's transportation fuels market is facing its biggest crisis in almost 20 years as severe shortages force some retailers to close their filling stations.

As global oil prices beat records, Russian firms are rushing to export both crude oil and refined products. That, combined with outages at refineries in central Russia, has caused a spike in wholesale gasoline and diesel prices.

The shortages have forced wholesalers to ration supplies to retailers, who in turn are unable to pass on higher costs after pledging to the Kremlin to keep pump prices stable ahead of a Dec. 2 parliamentary election.

"My vacation has gone to hell. I had to race back home after my staff told me they had nothing to sell," said Alexander, a wholesaler who declined to give his family name.

Retail prices for A-92 gasoline in the Moscow area average around 19.2 roubles ($0.78) a litre, while wholesale prices at the main regional fuel depot work out at 16.5 roubles.

That works out at a profit margin of around 16 percent, below the 20 percent many retailers need to cover their costs. Profit margins on diesel are even lower, at around 7 percent, traders reckon.

LUKOIL (LKOH.MM: Quote, Profile, Research) and TNK-BP TNBPI.RTS, half-owned by BP (BP.L: Quote, Profile, Research), have partly stopped business at their retail networks in Russia's southern regions, while Rosneft's (ROSN.MM: Quote, Profile, Research) Siberian retail network has been working intermittently, traders say.

Petrol stations that yield little profit are also being shut down. "Temporarily shutting down filling stations which sell little can be a way to reduce operating costs, instead focusing on sales on busy highways," a source at Lukoil said.