FAS Russia puts forward proposals how to saturate domestic motor fuel market and prevent unreasonable price growth

Мая 24, 2011

In view of the current situation on domestic motor fuel market associated with considerable growth of prices for these types of goods and shortage of fuel in some Russian provinces, the Federal Antimonopoly Service (FAS Russia) considers it necessary to set elevated export duties for all types of petrol to the level of 0.9 from oil duties.

According to FAS Russia, this measure will help reducing prices and saturate domestic market for the above goods.
At the same time, along with the proposed measure, FAS insists on relieving tax burden for consumers of motor fuel when global oil prices are over $90 per barrel by reducing the rates of excise duty for motor petrol and diesel fuel.
Also FAS proposes to refuse to further use progressive increase of excise duties for motor fuel in 2012 and 2013 and simply adjust the excise duties in line with the rate of inflation applying 0.9 coefficient. As FAS stated earlier, progressive increase of excise duties can stimulate growth of fuel prices by 6 – 8 % annually.
In the FAS Russia’s opinion, such measures will smooth the impact of growing global oil prices upon domestic market of oil products by reducing the rates of price increase, preventing sharp fluctuations of domestic prices for motor fuel and increasing attractiveness of supplying fuel to domestic market.
As part of its initiative, FAS has prepared a draft Federal Law on introducing amendments to the Tax Code of the Russian Federation, which has been forwarded to the Government of the Russian Federation.