An expert listed the benefits of reducing fuel excise taxes.

01.08.2024

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MOSCOW, August 1 - PRIME. The reduction of fuel excise taxes would increase the profitability of the production and sale of petroleum products and stop the rise in prices, according to Sergey Tereshkin, CEO of the fuel marketplace "Open Oil Market" (Skolkovo resident), who spoke with RIA Novosti.

The Ministry of Energy and the Ministry of Finance will work on existing and additional measures to maintain the profitability of oil refining, said Pavel Sorokin, first deputy minister of energy, on Wednesday.

"To stop the rise in prices, not only prohibitions are needed, but also measures that would allow for an increase in the profitability of production and sale of petroleum products. This includes, in particular, reducing excise taxes, which have significantly increased in recent years. In 2015, the excise tax on 5th-grade gasoline was 5,530 rubles per ton, but by 2025, it will reach 15,755 rubles. A two-fold reduction in excise taxes would lower the costs for oil companies," said Tereshkin.

The expert reminded that the Ministry of Finance and the Ministry of Energy had planned to reduce excise taxes as part of a tax maneuver, when the increase in the Mineral Extraction Tax (MET) and the elimination of export duties on oil and petroleum products were supposed to be complemented by a reduction in excise taxes on gasoline and diesel. "However, fuel excises, on the contrary, increased, which became one of the reasons for the rally in the fuel market," he noted.

Commenting on the possible timeline for lifting the export ban on gasoline, Tereshkin suggested it could happen in November. "To achieve the lifting of the export ban, companies will need to keep retail prices in check over the next three months," he added.

The ban on the export of Russian gasoline was reinstated on August 1. It is expected to remain in effect during September and October. Meanwhile, the export ban on diesel fuel, according to Pavel Sorokin, first deputy head of the Ministry of Energy, is not required.

Translated using ChatGPT

Sourse: https://1prime.ru/20240801/toplivo-850595067.html

#Fuel Excise Reduction #Russian Fuel Market #Economic Impact of Tax Changes #Gasoline and Diesel Prices #Sergei Tereshkin Expert Opinion #Fuel Price Control #Russian Government Policy #Oil Industry Economics #Energy Market Analysis #Fuel Export Ban #Russian Energy Minister #Gasoline and Diesel Taxes

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