Russia May Cut Crude Export Tax by 1.3% Next Month on Urals Drop

Russia, the world's biggest oil producer, may lower its export duty on most crude shipments by as much as 1.3 percent from Feb. 1 after Urals prices fell.

The standard duty may drop from $392.40 to $394.50 a metric ton, or from $53.53 to $53.82 a barrel, according to Bloomberg calculations based on Finance Ministry data. That compares with $397.50 a ton in January.

The discounted rate on some Eastern Siberian and Caspian Sea oil may be set within a range from $190.30 to $191.80 a ton, compared with $194.10 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 $107.93 to $108.41 a barrel during this period, Alexander Sakovich, a Finance Ministry adviser, said by phone on January 11, 2012. Urals averaged $109.09 in the previous period, according to the ministry.

Prime Minister Vladimir Putin must sign off on the levies before they take effect. The government 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 from $259 to $260.30 a ton next month, from $262.30 in January.

A gasoline tax that Putin imposed from May to counter domestic shortages may be within a range from $353.10 to $355 a ton, from $357.70 this month. That is 90 percent of the crude oil duty.