PRESS: Russia can cut incentives for naphtha, raise for LPG

MOSCOW, Nov 6 (PRIME) -- The Russian government may reduce incentives for naphtha production as it looks for new sources to finance liquefied petroleum gases (LPG) production, business daily Kommersant reported on Wednesday, citing sources.

The naphtha subsidy now stands at 13,000 rubles, including a 9,700-ruble per tonne excise refund and a 3,200-ruble customs duty subsidy. A source with knowledge of the situation told Kommersant that the incentive can be cut to about 9,000 rubles per tonne.

The Energy Ministry earlier offered to set a two-part excise refund on LPG – a 4,200 ruble refund of operating costs and a 3,100 ruble investment refund to support margins of new pyrolysis capacities.

(63.2480 rubles – U.S. $1)

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