UPDATE: Min: Russia to see no fuel deficit on sectorial taxes change

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MOSCOW, Jan 26 (PRIME) -- The Energy Ministry will prevent fuel deficit in Russia on the back of taxation changes in the oil and gas sector, Minister Alexander Novak told PRIME on January 25.

“Oil price was about U.S. $100 when we were calculating the tax maneuver with the Finance Ministry. We were discussing issues and there were no reasons for fuel deficit then. Now, as the oil price fell, we need to recalculate. Sure, we will not allow fuel deficit to happen. We will act promptly if there is a need,” Novak said.

Novak did not rule out further changes in new tax rules.

Under the tax maneuver, oil export duties will be gradually reduced by 41.2% in three years, export duties for oil products will be reduced by 41%–80%, while gas condensate duties will be cut by 84.6%, while the mineral extraction tax will soar that will result in growing domestic oil price and fuel price.

Russia may face gasoline deficit if authorities try to regulate prices, Vagit Alekperov, CEO of oil company Lukoil, said in an interview with Vedomosti business daily released on January 23. “Today, we may face a situation when there is gasoline deficit if we regulate the domestic market. Increase in exports amounts will be much more profitable than supplies to the domestic market. The situation will be alike with the 1990s one when we saw products deficit. We cannot regulate the domestic market today,” he said.

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