Russia to Lower Oil Export Tax 3.4% in November After Urals Fell
The standard export duty will decline to $404.50 a metric ton, or $55.18 a barrel, from $418.90 a ton in October, according an order signed by Prime Minister Dmitry Medvedev and published today on the website of Rossiyskaya Gazeta, the state newspaper.
The government may propose changes to lower the tax rate by the end of the first quarter next year to stimulate output after President Vladimir Putin set a goal of producing more than 10 million barrels a day for at least a decade. Output climbed to a post-Soviet high of 10.39 million barrels a day in September, according to the Energy Ministry’s CDU-TEK unit. Oil and gas provide about half of Russia’s budget revenue.
The discounted rate on some eastern Siberian and Caspian Sea grades will fall to $199.40 a ton from $210.10 this month. The levy on extra-heavy crude, set at 10 percent of the standard duty, will be $40.40 in November.
Russia bases the export taxes on the average Urals blend price from the 15th day of one month to the 14th of the next. The benchmark export grade averaged $110.71 a barrel during the most recent period, Alexander Sakovich, a Finance Ministry adviser, said Oct. 15 by phone. In the previous monitoring period, it averaged $113.98, according to the ministry.
The duty for middle distillates, such as diesel, and heavy products, such as fuel oil, will drop to $267 a ton next month from $276.40 in October. A gasoline tax, which was set at 90 percent of the crude oil duty since May 2011 to counter domestic shortages, will decline to $364.10 a ton from $377 this month.
The government will raise the duty on liquefied petroleum gases such as butane and propane to $192.40 a ton in November from $172.50 this month.
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