Russian Government refuses to reduce export duty on gasoline

The Russian Government hasn’t supported the initiative of oil companies to reduce oil export duty on straight-run gasoline, produced from gas. According to the Izvestia, Ministry of Economic Development opposed the reduction of customs duty on this category of fuel from the current rate of 90 % of the duty on crude oil to 66%. According to the Ministry, such a reduction is impossible because of the shortfall in income and difficulty in administering such benefits. At the same time, the Ministry of Economic Development acknowledged that change of tax rates in refining led to a decline in gasoline production profitability, and studies the possibility to reduce the rate of export duty on straight-run and commercial gasoline from January 1st of 2015.