Thu 26 Jun 2008 10:04

Russia raises fuel oil export tax


Fuel oil export duty is set to increase by over 22 percent from August.



Russia's Finance Ministry has revealed that the country's export duty on fuel oil is set to jump by approximately 22.5 percent, Reuters reports.

Starting August 1st, export tax on heavy products including fuel oil is expected to be increased from $151.1 per tonne to $185 per tonne. Duties on exports of light refined products, such as gasoline and gasoil, will rise to $345 per tonne from $280.5.

Meanwhile, export tax on crude oil is set to rise by 23 percent from current levels of $398.10 per tonne to around $490 to $495 per tonne according to government officials.

This is the eighth consecutive increase in Russia's crude export tax, which is revised on a two-monthly basis and based on the previous two-month average price for Urals, the country's benchmark export blend.

The Finance Ministry's previous revision of export duties in June resulted in a 16 percent increase on heavy and refined products. Crude export tax was increased by $46.40 a barrel, or 13.6 percent.

Over the last two months crude oil prices have continued to surge with the NYMEX light sweet crude contract reaching an all-time high of $139.89 on June 16th and London's Brent Crude contract peaking at $139.32 on the same day of trading.

Meanwhile, demand for Russian fuel oil has risen sharply in recent months with increased buying interest coming from Japanese refiners aiming to reduce production costs. Imports of Russian M100 fuel oil into Japan almost doubled in March compared to February, according to Japan's Ministry of Finance. The world's third largest oil consumer imported a total of 275,803 tonnes of M100 fuel oil during the month of March, an increase of 135,803 tonnes on the previous month and the highest monthly total in at least 16 months.

In April, exports of Russian fuel oil soared by more than 23 percent to 4.149 million barrels per day, buoyed in part by increased Japanese demand.

However, export tax revenues collected by the Russian Finance Ministry continue to be affacted by the drop in oil production. In April, Russia produced 9.72 million barrels of oil per day, the lowest level in 18 months. The country's oil production may decline this year for the first time in ten years as refiners are faced with high costs, aging oil fields and new deposits in increasingly remote areas.

Martin Vorgod, CEO of Global Risk Management. Martin Vorgod elevated to CEO of Global Risk Management  

Vorgod, currently CCO at GRM, will officially step in as CEO on December 1, succeeding Peder Møller.

Dorthe Bendtsen, KPI OceanConnect. Dorthe Bendtsen named interim CEO of KPI OceanConnect  

Officer with background in operations and governance to steer firm through transition as it searches for permanent leadership.

Bunker Holding's executive management team, from left to right: CCO Anders Grønborg,  COO Peder Møller, CEO Keld R. Demant and CFO Michael Krabbe. Bunker Holding revamps commercial department and management team  

CCO departs; commercial activities divided into sales and operations.

Image of a bunker delivery being performed by Peninsula's Hercules 8000 tanker vessel. Peninsula extends UAE coverage into Abu Dhabi and Jebel Ali  

Supplier to provide 'full range of products' after securing bunker licences.

A screenshot taken from Peninsula's homepage on October 4, 2024. Peninsula to receive first of four tankers in Q2 2025  

Methanol-ready vessels form part of bunker supplier's fleet renewal programme.

Stephen Robinson, pictured on his appointment as Head of Bunker Strategy and Procurement at Tankers International. Stephen Robinson heads up bunker desk at Tankers International  

Former Bomin and Cockett MD appointed Head of Bunker Strategy and Procurement.

Chart showing percentage of off-spec and on-spec samples by fuel type, according to VPS. Is your vessel fully protected from the dangers of poor-quality fuel? | Steve Bee, VPS  

Commercial Director highlights issues linked to purchasing fuel and testing quality against old marine fuel standards.

Ships at the Tecon container terminal at the Port of Suape, Brazil. GDE Marine targets Suape LSMGO by year-end  

Expansion plan revealed following '100% incident-free' first month of VLSFO deliveries.

Hercules Tanker Management and Hyundai Mipo Dockyard sign bunker vessel agreement Peninsula CEO seals deal to build LNG bunker vessel  

Agreement signed through shipping company Hercules Tanker Management.

Illustration of Kotug tugboat and the logos of Auramarine and Sanmar Shipyards. Auramarine supply system chosen for landmark methanol-fuelled tugs  

Vessels to enter into service in mid-2025.


↑  Back to Top