Against the backdrop of an escalating fuel crisis in Russia, there has been a sharp surge in demand for the installation of gas fuel systems (LBO). Drivers' desire to save on gasoline has collided with a new reality: auto service centers and manufacturers cannot cope with the influx of orders, while prices for conversion are rising rapidly.
Frenzy and Capacity Shortage
According to data cited by RBK-Ukraine from The Moscow Times, the situation in the market for vehicle gas conversion services has reached a peak. Russian media reports that as early as June, the number of inquiries to workshops increased by 35% compared to March and April figures.
This sharp rise in demand has led to booking slots for LBO installation in many services being fully booked for the next three months. Clients are forced to wait their turn as auto service capacities have been exhausted.
Supply Issues and Price Hikes
Difficulties have arisen not only for installers but also for component suppliers. Workshops are complaining about an acute shortage of necessary equipment. Suppliers were not prepared for such a frenzy, and their stocks quickly ran dry.
Against the backdrop of the shortage, the cost of LBO kits has practically doubled. The main equipment manufacturer — the Novogrudok Gas Equipment Plant — is also unable to cope with the volume of incoming orders.
Today, Russian services are asking for between 53,000 and 90,000 rubles for gas installation, excluding equipment registration fees.
Causes of the Fuel Frenzy
The backdrop for this situation is record gasoline prices in Russia, which, according to sources, are linked to daily attacks by the Ukrainian Armed Forces (AFU). On July 2, Ukraine struck one of Russia's largest oil refineries, exacerbating the situation with logistics and fuel supplies.
Creamlin Chief Vladimir Putin previously acknowledged the existence of fuel problems; however, experts believe he downplayed the real scale of the crisis.
