Russia May Raise October Oil Export Tax 6.4% on Urals Price Gain
The standard export duty is set to rise to $418.90 a metric ton, or about $57.15 a barrel, from $393.80 a ton in September, according to Bloomberg calculations based on data from the Finance Ministry.
The government is extending tax breaks for offshore and hard-to-recover resources to stimulate output and meet President Vladimir Putin’s goal of more than 10 million barrels a day for at least a decade. Production climbed to a post-Soviet high of 10.38 million barrels a day in August, according to preliminary data from the Energy Ministry.
The discounted rate on some eastern Siberian and Caspian Sea grades will probably increase to $210.10 a ton from $191.30 this month. Extra-heavy crude is taxed at 10 percent of the regular levy, or $41.80 in October.
Russia bases the export duties on the average Urals blend price from the 15th day of one month to the 14th of the next. The benchmark export grade averaged $113.98 a barrel during the most recent period, Alexander Sakovich, a Finance Ministry adviser, said by phone today. In the previous monitoring period, it averaged $108.25, according to the ministry.
Prime Minister Dmitry Medvedev must sign off on the levies before they take effect.
The duty for middle distillates, such as diesel, and heavy products, such as fuel oil, may grow to $276.40 a ton next month from $259.90 in September. A gasoline tax imposed from May 2011 to counter domestic shortages is likely to increase to $377 a ton from $354.40 this month. That is 90 percent of the crude oil duty.
The government may increase the duty on liquefied petroleum gases such as butane and propane to $172.50 a ton in October from $76.20 this month.
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