Report: Govt to raise excise duties on gasoline, diesel fuel Jan 1

MOSCOW, Aug 27 (PRIME) -- Russia’s government has decided to raise excise duties on gasoline and diesel fuel by 3,700 rubles and 2,700 rubles per tonne, respectively, from January 1, 2019, Deputy Prime Minister Dmitry Kozak said in an interview with RBC on Monday.

“The decision is made. The excise duties will be restored to the level planned from July 1… They were reduced by 2,000 rubles and 3,000 rubles per tonne in June. A hike by 700 rubles per tonne (scheduled for July) was canceled. They will be restored in January,” he said.

Kozak said he expects no substantial rise in fuel prices in January as the government will be able to take some steps to keep the prices down.

“Simultaneously with the reduction of customs duties and increase of the mineral extraction tax, a negative excise for oil refineries will be introduced to act as a market tool to keep the internal fuel prices down,” he said.

He added that if the step is not enough, the government may impose temporary export duties on oil and oil products.

Fuel prices grew rapidly in Russia in April and May. The government had to cut the excise duties on gasoline and diesel fuel, and agreed with the largest oil companies to fix prices at the level as of May 30 while the government was working on measures to support the industry.

(67.7911 rubles – U.S. $1)

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