Russia May Cut Crude Export Tax in June by 6.4% on Urals Decline

Russia, the world's biggest oil producer, may reduce its export duty on most crude shipments by 6.4 percent from June 1 after Urals prices dropped.

The standard duty may decline to $419.80 a metric ton, or $57.27 a barrel, from $448.60 a ton this month, according to Bloomberg calculations based on Finance Ministry data. The discounted rate on some eastern Siberian and Caspian Sea oil may fall in June to $210.80 a ton from $232.40.

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, averaged $114.18 a barrel during the most recent period, Alexander Sakovich, a Finance Ministry adviser, said by phone. In the previous monitoring period, the crude price averaged $120.76, according to the ministry.

Prime Minister Dmitry Medvedev must sign off on the levies before they take effect.

The duty for middle distillates and heavy products may drop to $277 a ton next month from $296 in May. A gasoline tax imposed from May 2011 to counter domestic shortages is expected to decline to $377.80 a ton from $403.70 this month. That is 90 percent of the crude oil duty.

The government may raise the duty on liquefied petroleum gases such as butane and propane to $237.10 a ton in June from $196.60 this month.