Russia May Lower Crude Export Tax 2.4% Next Month as Urals Drops

Russia, the world's biggest oil producer, may lower its export duty on most crude shipments by as much as 2.4 percent on Jan. 1 after prices fell.

The standard duty may drop to within a range of $397 and $398.80 a metric ton ($54.16-$54.40 a barrel), according to Bloomberg calculations based on Finance Ministry data. That compares with $406.60 a ton in December.

The discounted rate on some Eastern Siberian and Caspian Sea oil may be set within a range of $193.70 to $195.10 a ton, compared with $200.90 this month.

Russia bases the export duties on the average Urals crude price from the 15th day of one month to the 14th of the next. Urals, Russia's benchmark export blend, may average $108.99 to $109.40 a barrel during this monitoring period, Alexander Sakovich, a Finance Ministry adviser, said by phone December 12, 2011.

Prime Minister Vladimir Putin must sign off on the levies for them to come into effect. The government has lowered the crude tax rate applying a coefficient of 60 percent, down from 65 percent, and unified the duty on most refined products at 66 percent of that levy since October.

The duty for middle distillates and heavy products may fall to within a range of $262 to $263.20 a ton next month, from $268.30 in December.

A special gasoline tax that Putin imposed from May 1 to fight domestic shortages may be within a range of $357.30 to $358.90 a ton, from $365.90 this month. That is 90 percent of the crude duty.