Russia to Allow Addition of Alcohol to Gasoline to Boost Supply

Russia is preparing to modify the composition of its automotive fuel. The Ministry of Finance has proposed allowing refineries to use denatured ethyl alcohol in the production of AI-92 gasoline and to eliminate the excise tax on it. The measure aims to increase domestic fuel supply and ease price pressure.

According to the proposal, the share of alcohol in gasoline could rise from the current 1.5% to 10%. Experts estimate this would add about 100,000 tons of gasoline to the market each month. The Finance Ministry expects the decision to help stabilize the market and offset seasonal demand increases.

Denatured ethyl alcohol is already used in industry, but its application in fuel production has been restricted in Russia. The new rules are expected to boost domestic production of alcohol-based additives, creating new jobs and expanding the use of agricultural raw materials.

Experts note that introducing the new formula will require refineries to adapt their technology, as alcohol interacts differently with standard fuel components. Adding alcohol may also affect fuel properties such as volatility, viscosity, and energy efficiency.

The ministry emphasized that ethanol can partially replace imported additives and reduce the burden on the oil sector. At the same time, it is considering allowing the use of monomethylaniline, a compound that increases octane levels. However, this additive is banned in several countries due to its high toxicity, raising concerns among environmental organizations.

The decision on the new fuel composition will be finalized after consultations with the Energy Ministry, the Ministry of Industry and Trade, and Rosstandart. Officials are also discussing the introduction of technical regulations that will set permissible alcohol concentrations and safety standards for production.

Industry analysts view the Finance Ministry’s initiative as a temporary measure to stabilize the market, which has been affected by reduced exports and rising domestic demand. The additional fuel volumes are expected to mitigate shortages in some regions and curb retail price growth, especially ahead of the winter season.

Similar measures have been adopted in parts of Latin America, where ethanol serves as a bio-component in fuel. In Russia, this approach is still in its early stages, and authorities intend to closely monitor its impact on fuel quality and engine performance.

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