Russia has increased the duty on oil: how the decision will affect Ukraine

The duty on exports of oil from Russia from today, September 1, increased to 84.1 per ton from 74.4 per ton in August. This is evidenced by the Russian Ministry of economy.

In particular, the export duty on high viscosity oil from September 1, increased to 12.9 per dollar, from 11.2 per dollar in August. The duty on straight-run gasoline has increased to 46.2 dollars per ton with a 40.9 per ton, of gasoline — up to 25.2 per dollar, compared to 22.3 per dollar. Duty on other light oil and lubricating oil rose to 25.2 22.3 per dollar dollar per ton, on dark oil products without oil and coke — to 84.1 of the dollar from 74.4 dollar. Duty on coke increased to 5.4 from 4.8 per dollar dollar per ton.

As explained to “Today,” the President of the Association of oil market operators, is an expert in the field of energy Leonid kosyanchuk, the decision of the Russian Federation about increase of export duties on the situation on the world market will not affect. However, if, for example, prices on the world market will fall, and given increased duties for Russian companies will not be profitable to export oil, they will have to look for an opportunity to shift to a private market and the countries where preferential rates, for example, Belarus.

“Prices on the world market duties in Russia are not determined. The duty increase suggests that oil companies in Russia will begin to adjust the volumes of supply for export and domestic market. If will be profitable even with these $ 10 per ton to export, they will continue to do it,” – said kosyanchuk.

As you know, Ukraine imports about 80% of light oil products, including from Belarus. If the decision to raise export duties, Russian companies will review contracts with Belarus, Ukraine may slightly increase the price of gasoline. However, as noted by Leonid kosyanchuk, the duty increase does not mean that Belarusians more expensive Russian oil.

“$10 is practically nothing. Belarus operates in the regime of common customs space with Russia. But if there is additional duty on export of oil products with Belarus, then it may be an impact on us. But it’s a penny. If $ 10 per tone of oil, it is less than one dollar per ton of oil products. This is in large volumes – millions and for consumers of gasoline – a penny,” says kosyanchuk.

In addition, Belarus has also decided on 1 September to increase by 10 dollars of export duties on oil and oil products exported outside the customs territory of the Eurasian economic Union (EEU). The rate of export duty on crude oil increased from 74.4 to 84.1 USD per ton. Duty on commercial gasoline – from 22.3 to 25.2 per dollar dollar per ton.

The duty on light and medium distillates will be $25,2 per 1 ton (previously $22,3). The same duty will be imposed on diesel fuel, benzene, toluene, xylene, lubricating and other oils.

We will remind, in the summer of this year in Ukraine increased the consumption of gasoline. In addition, drivers began to burn more gas and LPG, the prices of which have soared recently seriously because of the shortage of this fuel in the market. The situation on behalf of the Prime Minister Vladimir Groysman and the President of Petro Poroshenko has already tackled the antitrust agencies – the AMC verifies the validity of the cost of autogas.

In addition, the AMC in June were transmitted to the government, the presidential Administration and other state authorities about the risks of price fluctuations in the oil market and the liquefied gas due to the import dependence of this region. Then the Committee recommended to stimulate the luck of the crude oil and to increase production of oil products, to create strategic reserves and diversify supply.