State Duma approves gas MET hike for 2024–2026 1st reading

MOSCOW, Oct 17 (PRIME) -- The parliament’s lower chamber State Duma has approved in the first out of the three required readings a bill that includes an additional increase of the mineral extraction tax (MET) for natural gas in 2024–2026.

The bill raises budget payments from additional incomes that the companies will get from the high growth of wholesale gas prices. To do that, the government will raise the special ratio called KKG from the current level of 134 in the next three years.

For gas giant Gazprom, the ratio will grow to 303 in January–June 2024, to 454 in July–December 2024, to 428 in January–June 2025, to 338 in July–December 2025, and to 464 in 2026. For the independent gas producers, the ratio will stand at 555 in January–June 2024, at 706 in July–December 2024, at 779 in January–June 2025, at 799 in July–December 2025, and at 963 in 2026.

The measure will add 116.8 billion rubles to the budget in 2024, 127.3 billion rubles in 2025, and 134.7 billion rubles in 2026. The bill also includes a complete transfer to the budget of Novatek’s profit tax from the sales of its shares in the subsidiaries that have right to export liquefied natural gas.

Also, the bill amends the discount of the Urals oil price to the Brent oil price, used to calculate the MET for oil. The discount is reduced to U.S. $15 per barrel from $20 per barrel in 2024, to $10 per barrel in 2025, and to $6 per barrel in 2026.

(97.2865 rubles – U.S. $1)

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