Price of gasoline in Russia declared unfairly low

The Ministry of Energy called the price of gasoline in Russia unfairly low and possible only due to the mechanism of reverse excise tax on oil raw materials with damping allowance. The message of the department leads TASS.

“The actual price of gasoline AI-92 – 44.89 rubles per liter as of March 25, 2021 in the territory of central Russia. Fair retail price without a damper – 50.08 rubles per liter,” the Ministry of Energy said.

Thus, the fair market price of fuel inside the country without interference from the state would be 5.2 rubles per liter above, consider it in the department.

In turn, the independent fuel union (NTS) at the end of March reported the growth of wholesale (stock) gasoline prices from December to March 17 by 18.5 percent: up to 53.6 thousand rubles per ton of AI-92 and up to 55 , 3 thousand per ton of AI-95. Also in the organization urged to cancel the damper mechanism.

It was introduced in 2018 as a government action to deter gasoline prices against the background of completing the tax maneuver in the oil industry. It provides gradual, up to 2024, cancellation of export duties on oil and petroleum products with a simultaneous increase in mineral extraction tax (NDPI).

The introduced return excise rate on the oil raw material is a tax deduction, the size of which depends on the volume of oil purchased by refining plants (refineries) for processing in Russia. A key element of the excise is a damping surcharge, equal to 68 percent of the difference between world gasoline prices for deducting the cost of transportation and export duties and in advance established by the government a conditioned price in the domestic market.

In the event that the prices in the world market are too high, and the difference is negative, 68 percent of it will have to pay the refiner to the budget in the form of an excise, which will become direct.

/Media reports.