Russia’s October Oil Export Duty Set to Rise 3.9% as Urals Gains
The standard export duty may increase to $416.40 a metric ton, or about $56.81 a barrel, from $400.70 a ton this month, according to Bloomberg calculations based on oil price data from the Finance Ministry.
Russia’s government depends on the oil and gas industries for about half of its budget revenue. Production in August hit a post-Soviet era record of 10.52 million barrels a day, according to data from the Energy Ministry’s CDU-TEK unit, in line with President Vladimir Putin’s output goal for the next decade. The government introduced extraction tax breaks for unconventional reserves this month to encourage production of new fields.
The discounted rate on some eastern Siberian and Caspian Sea grades may rise to $208.30 a ton in October from $196.50 a ton this month. The levy on extra-heavy crude, set at 10 percent of the standard duty, may climb to $41.60.
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 $113.42 a barrel during the most recent period, Alexander Sakovich, a Finance Ministry adviser, said today by phone. In the previous monitoring period, it was $109.83, according to the ministry.
The Economy Ministry will publish the levies on its website before they come into effect, according to Sakovich.
The duty for middle distillates, such as diesel, and heavy products, such as fuel oil, may rise to $274.80 a ton from $264.40. A gasoline tax, set at 90 percent of the crude duty since May 2011 to counter domestic shortages, may increase to $374.70 a ton in October from $360.60 a ton this month.
The government may raise the duty on liquefied petroleum gases such as butane and propane to $121.30 a ton next month, compared with $75.50 a ton currently.
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