Thu 26 Jun 2008, 10:04 GMT

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.

Russia 

Arctic Tern vessel. Wallenius Wilhelmsen takes delivery of first methanol-ready Shaper Class vessel  

The dual-fuel Arctic Tern will enter service on the Asia–Europe trade almost immediately.

Al Muraykh vessel. Hapag-Lloyd signs shore power agreement with Hamburg Port Authority  

Deal commits the carrier to using onshore power supply at all Hamburg terminals.

Dorthe Karin Bendtsen, KPI OceanConnect. KPI OceanConnect reports 21% rise in pre-tax earnings for 2025/26  

Marine fuel firm delivers 13 million tonnes and expands carbon markets capabilities amid geopolitical turbulence.

VTTI logo. VTTI Dalian completes first large-scale 'green methanol' vessel loading  

Cargo to be supplied as marine fuel in Shanghai.

Steff Tan, Oilmar. Oilmar appoints Steff Tan as marine fuels trader in Singapore  

New hire's background spans bunker operations, logistics, commercial trading, marketing, and business development.

Feng Da Hai vessel. Cosco Shipping adds methanol-ready bulk carrier Feng Da Hai to fleet  

The 64,000-tonne vessel is equipped with a methanol fuel system for future low-carbon operations.

Oilmar office in Dubai. Oilmar welcomes summer intern to Dubai branch  

Arpit Aryan will rotate across the bunker fuel trading, finance and operations departments.

Aerial view of the Dubai skyline. Oilmar takes on trading and finance intern in Dubai  

New intern to rotate across trading, operations and finance teams.

Seaspan and Maersk signing. Seaspan and Maersk deepen fleet efficiency collaboration with $75m upgrade programme  

Retrofit package for four 13,000-teu vessels includes installation of shaft generator to reduce auxiliary engine fuel consumption.

European Parliament building in Brussels. EU Parliament vote on soy biofuels could expose bloc to $5.6bn a year in trade sanctions  

MEPs reject regulation that would have phased out soy biofuels, risking WTO retaliation penalties.