Russia considers export duty on oil products of $250/T from Oct. 1

MOSCOW: Russia’s government is considering imposing export duties on all types of oil products of $250 per metric ton - much higher than current fees – from October 1 until June 2024 to tackle fuel shortages, sources told Reuters on Tuesday.

The domestic fuel shortage in Russia - one of the world’s biggest oil producers - is due to maintenance work at refineries, infrastructure bottlenecks and a weaker rouble.

Russian news agencies first reported the potential duty hike last Friday.

The Russian energy ministry and the office of Russian Deputy Prime Minister Alexander Novak did not immediately reply to requests for comments.

The duty for light products, middle distillates and diesel currently stands at $6.4 per ton and crude oil duty and the export fees for heavy oil products were $21.4 per ton in September.

Before the possible imposition of the latest duties, under current legislation oil export charges were due to have been cancelled in January 2024.

The sources familiar with the matter also said that the hiked duty, if approved, will be fully, or partially reimbursed, to those companies that comply with quotas for supplying oil products to the domestic market, as well as with pricing.

The compensation could be awarded only to those who have a tax license and for the fuel produced at company’s own facilities.