Russia Raises March Crude Export Duty 4.4% After Urals Gains

Russia, the world’s biggest oil producer, will raise its export duty on most crude shipments by 4.4 percent from March 1 following an increase in the price of the country’s Urals blend.

The standard duty will climb to $411.20 a metric ton, or $56.10 a barrel, from $393.70 a ton in February, according to a decree signed by Prime Minister Vladimir Putin and published today in the official government newspaper, Rossiyskaya Gazeta.

The discounted rate on some Eastern Siberian and Caspian Sea oil will climb to $204.40 a ton from $191.20.

Russia bases the export duties on the average Urals crude price from the 15th day of one month to the 14th of the next. Urals, Russia’s benchmark export blend, averaged $112.22 a barrel during the most recent period, according to the Finance Ministry, up from $108.23 in the previous period.

The government lowered the crude tax rate in October, applying a coefficient of 60 percent, down from 65 percent, and unified the duty on most refined products at 66 percent of that levy.

The duty for middle distillates and heavy products will rise to $271.40 a ton next month, from $259.80 in February.

A gasoline tax that Putin imposed in May to counter domestic shortages will increase to $370.10 a ton from $354.30 this month. That is 90 percent of the crude oil duty. The government will lower the duty on liquefied petroleum gases such as butane and propane to $157.30 a ton.