Russian Oil Duties to Fall 4.5% in April After Urals Declines
The standard export duty is likely to decline to $401.50 a metric ton, or about $54.80 a barrel, from $420.60 a ton this month, according to Bloomberg calculations based on oil price data from the economy and finance ministries. The March duty has been at the highest level since May 2012.
The government is reviewing the export duty structure to encourage producers meet President Vladimir Putin’s goal of keeping output at more than 10 million barrels a day. Production was 10.46 million barrels a day in February, near a post-Soviet high, according to preliminary data from 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 may drop to $197.10 a ton from $211.40 this month. The levy on extra-heavy crude, set at 10 percent of the standard duty, would be $40.10 in April.
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 about $110.02 a barrel during the most recent period, Alexander Sakovich, a Finance Ministry adviser, said today by phone. In the previous monitoring period, it averaged $114.38, according to the ministry.
The Economy Ministry will publish the levies on its website before they come into effect, he said.
The duty for middle distillates, such as diesel, and heavy products, such as fuel oil, may fall to $265 a ton from $277.60. A gasoline tax, set at 90 percent of the crude oil duty since May 2011 to counter domestic shortages, may be reduced to $361.40 a ton in April from $378.60 this month.
The government may lower the duty on liquefied petroleum gases such as butane and propane to $70.50 a ton from $131.40.
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