Russia’s Oil Duty Set to Increase 2.8% in July After Urals RoseJake Rudnitsky
Russia, the world’s biggest energy exporter, will probably boost duties on most oil shipments abroad by 2.8 percent on July 1 after Urals crude prices rose.
The standard export duty may increase to $369.20 a metric ton, or about $50.37 a barrel, from $359.30 a ton this month, according to Bloomberg calculations based on oil price data from the Finance Ministry.
The government is seeking ways to encourage producers to meet President Vladimir Putin’s goal of keeping output at more than 10 million barrels a day. Production was 10.48 million barrels a day in May, 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 rise to $172.90 a ton from $165.50 this month. The levy on extra-heavy crude, set at 10 percent of the standard duty, may climb to $36.90 in July.
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 $102.64 a barrel during the most recent period, Alexander Sakovich, a Finance Ministry adviser, said today by phone. In the previous monitoring period, it averaged $100.39, 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 $243.60 a ton from $237.10. A gasoline tax, set at 90 percent of the crude oil duty since May 2011 to counter domestic shortages, may increase to $332.20 a ton in July from $323.30 this month.
The government may reduce the duty on liquefied petroleum gases such as butane and propane to $45.20 a ton next month, down from $72.20 in June.