Russia Oil CEOs Ask Medvedev to Keep Graded Excise Tax, RIA Says

Executives at four Russian oil companies asked Prime Minister Dmitry Medvedev to maintain differentiated excise taxes for various qualities of motor fuel, RIA Novosti said today, citing a letter from the executives.

Proposed increases in the excise tax on gasoline and diesel that contain less sulfur may hurt revenue, increase prices at refineries and lead to cuts in investment plans, the state-run Russian news service said, citing the letter signed by OAO Lukoil Chief Executive Officer Vagit Alekperov, TNK-BP Executive Director German Khan, OAO Gazprom Neft CEO Alexander Dyukov and OAO Bashneft CEO Alexander Korsik.

The executives were responding to a proposal from Finance Minister Anton Siluanov to increase excise taxes on fuels with a lower environmental impact in 2013, RIA Novosti said.

Excise duties for domestic sales of high-quality gasoline and diesel were lowered in July as an incentive for refiners to manufacture cleaner oil products.

To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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