Russia to Lower Oil Export Duties Substantially

According to Russian government news of June 26, from July 1, Russia will lower its petroleum export duty by 12% or so to USD 369.3/ton from current USD 419.8/ton.

From July 1, the export duty on light and heavy oil products will reduce to USD 243.7/ton from current USD 277/ton, and that of gasoline will reduce to USD 332.4/ton from current USD 377.8/ton.

Additionally, preferential duty will continue for crude exports from east Siberia and Caspian regions at the rate of USD 173/ton from July, which is currently USD 210.8/ton.

The Russian government monthly adjusts the oil export-duty norms based on international market quotation.

As per its new duty-calculation method, the government uses 60% as the coefficient for crude export-duty calculation, which was 65% before, and 66% of the crude export duty as that of light/heavy oil products, but 90% as the coefficient for gasoline duty calculation.